Stockwatch

The week's winners
Kiln up 3.4%
Benfield up 3%
Beazley up 2.1%

The week's losers
R&SA down 9.3%
Brit down 7%

Just how much more can they take? Brokers and customers have been dismayed to see Royal & SunAlliance (R&SA) splashed across the news pages this week.

It's for all the wrong reasons - again.

R&SA is due to announce its interim results this week and they're expected to show a fairly decent recovery from the mess the group got itself into last year, when it was forced to cut 12,000 jobs and slice £3.5bn off its new written premiums. But this is set to be overshadowed by demands for money to fill holes left by US asbestos and environmental claims.

The cash would be split, according to the Financial Times, between claims reserves and building the business. The newspaper reported R&SA's advisers were considering whether to go for £700,000 or push the amount up to £1bn.

Let's not forget this was the figure that shareholders found unacceptable just last autumn. Since then, the group has waved goodbye to former chief executive Bob Mendelsohn and a question mark must be hanging over finance director Julian Hance.

The downgrading of Munich Re by Standard & Poor's and AM Best last week increases pressure for a cash call. Not only does it emphasise the need for all insurers to keep strong reserves but it strengthens the argument for R&SA to buy itself out of its 10% quota share arrangement with the German group.

But R&SA has a poor record on creating value - something unlikely to change if it simply taps the market for more cash.

Julian Hance told Insurance Times last August: "We are extremely frustrated and feel for the shareholders."