Royal & Sun Alliance unveiled a 14 per cent fall in half-year profits today as it focused on its position as Britain's second biggest general insurer.
The group said it was now a better balanced business and confident of meeting regulatory capital requirements following the sale of a number of assets, including its closed UK life assurance fund for £850 million sterling.
Operating profits from the reshaped group in the six months to June 30th were in line with City hopes, down to £301 million from £351 million a year earlier.
The company said its remaining British businesses, including More Than, produced strong first half results with its combined operating ratio (COR) - a key industry measure of profitability - improving by 3.5 per cent to 93.6 per cent.
COR, which represents the amount of money spent paying out on claims and in costs for every £1 of premiums taken in, improved in both personal and commercial lines.
The overall COR and results performance continued to be adversely affected by restructuring in the United States, where a planned reduction in premiums were among factors to impact the figures.
The last two years has seen a period of significant change for the group as it attempts to boost its balance sheet position, including through a £960 million rights issue.
Royal & Sun Alliance said today around €168 million in annual cost savings had also been achieved, including in Britain, where its number of offices fell from 93 to 34 and headcount was reduced by 6,000.
PA News