The insurance giant is braving falling share markets to launch what will be the biggest Initial Public Offering (IPO) in the world this year.

The shares in Promina Ltd will be priced between A$1.50 and $2.

Promina is the third largest general insurer in Australia and the second largest in New Zealand.

Falling markets

Royal and Sun Alliance has been forced to seek the listing amid pressure to raise capital and clean up its balance sheet.

The insurer has been hit by weak stock markets and asbestos-related claims.

It has lost 75% of its stock market value in the past year, making it the worst performing insurer in the FTSE 100 index of leading shares.

It has cut up to 12,000 jobs as it struggles to raise cash to pay claims.

The company's shares lost 2.5p to 69.5p, in a heavily declining market.