British Insurer RSA to Cut 1,200 Jobs

February 27, 2009

RSA Insurance Group PLC said that it plans to cut 1,200 jobs as it reported a 7 percent fall in its full-year profit.

For the year ending Dec. 31, RSA reported a profit of 586 million pounds ($831 million), down from 628 million pounds in 2007.

Net written premiums rose to 6.46 billion pounds, up from 5.84 billion pounds.

RSA said the job cuts, about 5.5 percent of its global work force, were the major part of a drive to cut expenses by 70 million pounds by mid-2010. The company said it would log a reorganization cost of 80 million pounds for 2009.

RSA shares rose 10.6 percent to 139.4 pence on the London Stock Exchange.

Despite a largely positive report, “some caution is warranted,” said Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers.

“Many of the group’s growth markets such as the Baltics and the Middle East are now suffering under the credit crisis, whilst historically, deteriorating economic conditions have usually increased both crime and fraud.”


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