By Tapan Panchal

LONDON--RSA Insurance Group PLC (RSA.LN) Thursday said that it aims to restart dividend payments with its 2014 full year results, as it posted a significant fall in first-half pretax profit.

For the six months ended June 30, the company posted a pretax profit of 69 million pounds ($116.3 million), down from GBP250 million in the same period last year. Net written premiums declined to GBP3.93 billion from GBP4.65 billion.

The insurer said that foreign exchange movements, notably the strengthening of sterling during the first half, drove reported premiums down 16%.

"While first half profits are modest, they reflect further balance sheet and reserve clean-up as well as above normal weather costs," Chief Executive Officer Stephen Hester said.

RSA is currently in the middle of an action plan to turn around the business, said it will make further disposals over the next 12 to 18 months. The insurer, which employs around 23,000 people, is also targeting over GBP180 million in gross annualized cost reductions over the next three years, excluding disposals

Mr. Hester, the former Royal Bank of Scotland Group PLC (RBS.LN) boss, has been racing to shore up the company's balance sheet after it uncovered problems in its Irish arm last year. Since taking charge in February, Mr. Hester has sold the insurer's operations in China, Canada, Baltics and Poland, made a number of management changes and has conducted major fundraising.

-Write to Tapan Panchal at tapan.panchal@wsj.com

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