Fitch Ratings has commented on Royal & SunAlliance's preliminary 2001 results, saying they reflect a poor but not unexpected performance.
R&SA's operating profitability declined significantly in 2001 to £16m.
A spokesman for Fitch commented: "As a group focused on producing a 103% combined ratio - and therefore a 10% net real return on capital - the next couple of years are viewed as critical in terms of achieving its stated goal.
"R&SA, along with the rest of the non-life industry, has witnessed rapid rate increases through the recent renewal season. Fitch expects the current 'hard' environment to last for up to two years.
"However, with R&SA's total capital having fallen to £5,953m at year-end 2001, some enhancement of the capital base is needed to support long-term growth potential."
