Royal & Sun Alliance has confirmed that it will undertake a strategic review of its business, as indicated on the release of its first quarter results.

The global insurance group announced yesterday that the review of "all substantive issues relating to its operations and its capital position" will take place, following recent press speculation about the company's performance.

More details of the review will be announced on Thursday, when Royal & Sun's group interim results are due to be issued.

Last year, the insurer was badly hit by a wave of asbestos claims made by engineering firms to which it gave employers' liability cover in the United States and the United Kingdom.

A spokesman for Royal & Sun Alliance Ireland would not comment on whether the review, which follows the appointment of a new chief executive at the group, will have an impact on Royal & Sun's operations in the republic.

However, it is thought that Ireland remains one of Royal & Sun Alliance's key markets going forward and that the review will focus on other parts of the group's interests.

The general insurance company, which sells motor, home and employers' liability policies through the broker network, employs 550 people here.

It has a significant share of the home insurance market, providing cover to around one in every three homes in the Republic.