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Royal & Sun Alliance has appointed Fallon McElligott to handle the

launch of a new internet brand following a pitch against TBWA GGT Simons

Palmer and M&C Saatchi.

The account is understood to be worth more than pounds 6 million and

will involve both the initial launch and a supporting campaign to be

rolled out over the course of this year.

MGM, which holds a place on RSA’s roster of media agencies, is believed

to be handling media planning and buying.

There is some speculation that the unnamed site may attempt to extend

the company’s services beyond the insurance field following its tough

year in 1999.

First quarter operating profits fell by more than 25 per cent after the

group refused to cut prices in response to market conditions. A series

of natural disasters such as the Taiwan earthquake led to pounds 65

million of insurance losses in the fourth quarter.

Separately, RSA has introduced a revamp of its existing website,

www.rsacommercial.co.uk.

New features include a workshop asking brokers to share their opinions

of online insurance services available on the web. Such feedback could

be incorporated into the launch of a new online brand.

RSA’s competitors, Legal & General and Axa, are planning the launch of

their own online services to compete with web pioneers such as Egg, the

Prudential’s internet brand, which successfully launched its own credit

card last year.

Egg this week announced plans to enter the current account market in

direct competition with the UK’s high-street banks.