Royal & Sun Alliance (R&SA) is expected to announce a fall in first quarter profits on Thursday, weighed down by claims for storm and flood damage in the UK and Scandinavia.
Analysts predicted pretax operating profits, which will be stated for the first time under International Financial Reporting Standards (IFRS), to fall within a range of £106m-£134m, with consensus at £117m.
During the same period last year, operating profits were reported as £148m under the former GAAP accounting standard.
Analysts at Merrill Lynch estimate that on a constant GAAP basis, profits for the first quarter of 2005 will come in at £113m, down from last year's £148m.
The company is also expected to update the market on whether it will have to set aside additional cash this year to cover its liabilities in the US.
