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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