Insurance giant Royal and Sun Alliance today announced it is to cut 200 jobs at its offices in Horsham.

About 1,700 RSA workers are based in the town. Those affected work in the company's UK Life and Pensions operation.

The department employs about 2,500 workers across the UK and 1,300 jobs are to be lost in total in the next 18 months.

Chief executive Bob Mendelsohn said: "This has been a difficult decision that will affect many colleagues but we believe it is the right one that is in the best interests of the group and the UK company as a whole."

"The group has been in talks with unions on the number and timing of cuts."

The company said affected employees would where possible be offered other opportunities within the group.

Today's news is the second major blow for RSA staff in Sussex in four years.

In 1998 almost 300 jobs were lost when the company closed its customer service centres in Brighton and Horsham.

In July 2000 unions were worried that up to 250 jobs could be lost after the company announced it was planning to contract out some posts to India to keep the company competitive.

Today's announcement of the restructuring follows a review of the life business as RSA moves to concentrate on general rather than life insurance.