Royal & Sun Alliance misses targets
by Kay Murchie
Royal & Sun Alliance (RSA), UK’s second-largest commercial insurer, has announced that in spite of reporting better-than-expected first-half profits, it will not achieve its targets for this year.
The group anticipates claims from the summer floods to reach £120 million. The estimate for the June floods in Yorkshire is £55 million while the July floods in Gloucestershire are estimated at £65 million.
Consequently, underwriting profits declined by 16% in the first half of 2007, to £144 million and this will impact on the company’s target of a combined operating ratio of at least 95%, for 2007. For the first half of 2007, RSA posted operating profits of £403 million - a figure well above analysts’ expectations.
However, as part of a cost-reduction programme, jobs losses are expected with an attempt to make savings of £70 million. 500 jobs are expected to go in the UK with 200 likely overseas.
Royal & Sun Alliance write business in 130 countries, providing general insurance products to over 20 million customers worldwide.
Discuss this in the Finance Markets forums
Story link: Royal & Sun Alliance misses targets
Add to Bookmarks:
Related financial stories to: Royal & Sun Alliance misses targets
- Alliance & Leicester in £391m write-down
- Alliance & Leicester says profits grew 7 percent last year
- Hurricane Dennis misses platforms
- Best loan rates from the Alliance & Leicester
- Alliance & Leicester – new Visa card
- Hyundai targets increased Beijing demand
- Santander to boost UK presence with Alliance & Leicester takeover
- Alliance & Leicester forced to calm fears
- Royal Mail closes pension scheme to new workers
- 200 jobs go at Royal Bank of Scotland
Previous: « European markets in significant declines
Next: Pension sector back in the black »
Visited 796 times, 2 so far today
