Insurance giant Royal & Sun Alliance has said it will cut jobs and sell assets in order to shore up its finances.

The group, Britain's second largest insurer, has ruled out trying to boost its cash reserves through a fundraising exercise on the stock market.

Instead it said it would sell its US business RSUI and float most of its Asia Pacific operations, leaving it free to concentrate on its troubled UK division.

But the company also announced 900 job cuts in the UK as part of plans to cut costs.

The news came as RSA reported profits of �471m ($700m) for the last nine months, in line with market expectations.

Leaner and meaner

The company added that it needed �3.6bn to fund its future growth plans, which include a renewed focus on general insurance.

RSA acting chief executive Bob Gunn said the firm's new cost-cutting strategy would lead to "better performance, stronger results and improved returns for our shareholders."

"The scope and scale of these actions are more significant and far-reaching than anything we have previously undertaken and we are committed to achieving them," he said.

RSA has been hit hard by the stock market slump, asbestos claims and flood liabilities.

Edging higher

The company has disappointed the City with weaker than expected results twice this year, pushing its share price down by three quarters since January.

Reports that the firm planned to raise cash by issuing new shares - a move that would have diluted the value of its existing stock - also damaged investor sentiment.

The company ousted its former chief executive Bob Mendelsohn in September, and has yet to appoint a permanent successor.

The market reacted cautiously to the latest figures, marking RSA's shares 5p higher to 123p.