Royal & Sun Alliance Group Plc., the U.K.’s second-largest general insurer, announced an operating profit of 拢140 million ($255 million), down from 拢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 拢300 million ($546 million) to 拢200 million ($364 million), it still had to increase reserves by 拢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.
Palm Beach Billionaires Feud Over Who’s Really Protecting the Everglades 
Florida Needs More 鈥� Much More 鈥� Wind Mitigation, Say Experts at OIR Summit 
State Farm Agrees to $15M Settlement for Underpaid Vehicle Claims 
‘The Arms Race Is On’: Chubb’s Greenberg on Mythos, Middle East 
