RSA boosts dividend despite a massive drop in its profits
RSA INSURANCE yesterday posted pre-tax profits down 24 per cent in the first half of the year, as it unveiled a seven per cent dividend hike that it said underlines its positive outlook.
The general insurer, which operates the “More Than” brand in the UK, posted profits of £301m, compared to £395m made in the same period last year, thanks to a slump in car and house insurance sales due to the downturn. But it said it would increase its interim dividend seven per cent to 2.9p.
Chief executive Andy Haste said: “We have a healthy deal pipeline and we’re particularly seeing a lot of activity in emerging markets”
The group said operating profits were boosted by a strong underwriting performance, rising two per cent year-on-year to £183m. But this does not include investment returns, which fell 13 per cent to £270m.
Overall, the group wrote four per cent more insurance premiums, taking the total to £3.48bn.
“RSA has delivered another good set of figures. The underwriting performance will drive the share price at least in the short to medium term,” said Panmure Gordon analyst Barrie Cornes.