RSA should offer more for Aviva units -Royal London

LONDON Aug 16 (Reuters) - Royal London Asset Management, one of Aviva's (AV.L) institutional shareholders, said RSA (RSA.L) should offer more for Aviva's core general insurance units, in the wake of Aviva's rejection of RSA's bid approach.

Aviva said earlier on Monday it had rejected a 5 billion pound ($7.8 billion) approach from RSA for those businesses.

"We don't think 5 billion was enough. We think it should be worth more than that," said Jane Coffey, head of equities at Royal London Asset Management, which owns around 0.5 percent of Aviva's share capital.

She said there was no need yet to call for a break-up of Aviva but added Aviva had to work harder to convince investors of the merit of its business model.

"We're not yet at the point where we have to push for a break-up to realise value," said Coffey. (Reporting by Sudip Kar-Gupta; Editing by David Holmes) ($1=.6408 Pound)