Royal & SunAlliance reports profitable results

Royal & SunAlliance Insurance Group Plc.’s saw its nine-month profit more than double increasing by 97% in pre-tax profits at 488 million pounds due to strong core business performance.This increase reflects a 10% increase in the company’s 4.1 billion pound net written premiums.Royal & SunAlliances premiums saw an 11% increase in Canada and Latin America, and a 9% increase in Scandinavia. In the main U.K. market, premiums only rose by 4% to 2 billion pounds.The Company reported that the 92 million pound sale of its Japanese business for 92 million pounds benefited its profitable performance.Andy Haste, the Company’s chief executive, says the Company expects to its full-year group combined operating ratio will rise above its 96-9%R target. In its efforts to exit the U.S., the Company reduced the number of outstanding claims by 29% after it stopped taking new business in the U.S. in 2003 after controversial asbestos-related claims. Though Royal & SunAlliance had limited exposure to hurricane related claims, the company said it expects to absorb an insured loss of 14 million pounds from Hurricane Katrina, down from an initial estimate of 25 million pounds. For the third quarter, the company’s net income went up to 183 million pounds against a loss of 74 million pounds in the year-earlier period. Net written premiums rose to 1.27 billion pound from 1.22 billion pounds.