RSA back in the black
TROUBLED RSA bounced back into the black yesterday declaring it was once again one of the world's strongest insurance firms.
The owner of More Than, battered last year by accounting irregularities in its Irish division and bad weather, posted a £69million pre-tax profit in the six months to June 30 compared with a £494million loss in the second half of 2013.
Former Royal Bank of Scotland boss Stephen Hester, who became chief executive in February, said it had been helped by restructuring including a £775million rights issue, moving out of non-core markets including China and Poland and shedding 100 UK jobs.
RSA is again a strong international general insurer. There is much to do but a good start has been made
He has targeted £180million of further cost savings over the next three years with more British jobs likely to go. "RSA is again a strong international general insurer," Hester said. "There is much to do but a good start has been made."
It wrote fewer new policies during the period sending new premiums down 9 per cent to £3.9billion. the shares fell 13½p to 430½p.
Rival insurer Aviva said its turnaround was going faster than expected as first-half profits rose 4 per cent to £1.05billion, lifting its shares 12¾p to 502½p.
