Royal & Sun Profits Fall

May 5, 2000

Royal & Sun Alliance Insurance Group shares fell nearly five percent Thursday on word that the British financial service company’s first quarter profits fell 4.8 percent. Turning around the group’s underperforming British general insurance book took longer than some analysts expected, but it was on track to meet its underwriting and capital return targets next year. Also, Orion Capital, Royal & Sun’s major U.S. acquisition last year, was performing better than expected. Group operating profits for the company fell to $215.6 million despite a 20 percent increase in worldwide general insurance premiums due to two large acquisitions.

Royal & Sun Alliance Insurance Group shares fell nearly five percent Thursday on word that the British financial service company’s first quarter profits fell 4.8 percent. Turning around the group’s underperforming British general insurance book took longer than some analysts expected, but it was on track to meet its underwriting and capital return targets next year. Also, Orion Capital, Royal & Sun’s major U.S. acquisition last year, was performing better than expected. Group operating profits for the company fell to $215.6 million despite a 20 percent increase in worldwide general insurance premiums due to two large acquisitions.

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