Royal & Sun Alliance, the UK insurer, said that its operating profit for the nine months to end-September rose 21 per cent to £590 million sterling from £488 million in the same period of 2005.
This was marginally below a consensus poll of analysts by the company of £592 million. Profit before the sale of its Japanese business and pension scheme change rose 40 per cent to £477 million from £341 million.
Profit after tax fell 9 per cent to £344 million in the first nine months of the year from £378 million, which included £166 million from the sale of its Japanese business.
Combined operating ratio - costs and claims expenses as a proportion of premium income, and a key indicator of profitability - fell to 93.1 per cent from 93.5 per cent, as RSA profited from increased cost-cutting measures.
'It looks like a decent set of results,' said Gerald Farr, an analyst at Seymour Pierce. 'Analysts were expecting possibly a 93 per cent combined ratio but they didn't get it.'
Andy Haste, RSA's chief executive said, 'The Core Group is positioned to continue delivering sustainable profitable performance', and added that the group is expected to improve on its full-year guidance of a combined ratio for the year of around 95 per cent.
The group also had an underwriting profit of £238 million in the first nine months of the year, up from £195 million in the first nine months of 2005.
It added that it remains on track to complete its sale of its US business to Arrowpoint Capital, reiterating that the loss on the sale would be £433 million.