Royal & Sun Alliance Group Plc., the U.K.’s second-largest general insurer, announced an operating profit of £140 million ($255 million), down from £226 million ($411 million) in 2002, a 38 percent drop.
The result was at the low end of analysts’ consensus forecasts. It indicates that for all of the company’s restructuring and capital increase through assets sales and a rights issue, orchestrated by CEO Andy Haste, R&SA is still struggling.
The principal reason for the decline came from reserve increases in connection with R&SA USA. Even though the company reduced its contingent liability estimates from £300 million ($546 million) to £200 million ($364 million), it still had to increase reserves by £96 million ($175 million) in the fourth quarter.
R&SA’s combined ratio, however, improved to 108 percent from 109.4 percent last year.
Was this article valuable?
Here are more articles you may enjoy.
Erie CEO NeCastro Steps Down Early; Bolash Named Interim Leader 
Pennsylvania Public Adjuster Law Adds Cap on Fees, Bans Ties With Contractors 
Florida Appeals Court Bars Release of ‘Trade Secret’ Info in Heritage Claims Litigation 
AIG’s General Insurance Q3 Underwriting Income Down 29% 
