ClickAJob News

Emerging markets helped insurer Royal & Sun Alliance's full-year profit rise, despite huge losses from summer flooding in the UK.

The group posted pre-tax profits of £670 million compared to £649 million in 2006, on operating profit of £814 million, a four per cent increase from last year.

Andy Haste, group chief executive of Royal & Sun Alliance, said: "The results have been delivered against the backdrop of a competitive rating environment, adverse large losses and weather, including the UK floods, and volatile investment markets."

The company recorded losses of £120 million after the floods in the UK, as well as adverse weather and large loss experienced across the group.

But in emerging markets, the insurer achieved double-digit growth, increasing net written premiums by 16 per cent to £615 million.

The company's combined ratio, which measures claims and costs as a percentage of premiums, improved to 94.9 per cent.

Royal & Sun Alliance said it expects to deliver a 2008 combined operating ratio of around 95% and has increased the final dividend by 10 per cent to 4.53p, bringing the total dividend for the year to 7.01p, up 19 per cent.

Shares in the insurer were up 0.35 per cent to £1.42 on the London Stock Exchange in morning trading.