Shares in Royal & SunAlliance were down 10.75p (3.6%) in early trading after the insurer reported first quarter profits down on last year and failed to meet its combined ratio target.
Pre-exceptional operating profits were down by £3m to £160m compared to the same period last year, it revealed this morning.
The combined ratio improved to 104.2% from 105.7% in the same period of 2001 but failed to hit the 103% due to be achieved at the end of last year as poor investment results took their toll.
R&SA's general insurance division produced profits of £120m in the first quarter, compared with £143m in 2000.
Chief executive Bob Mendelsohn put a brave face on the results, saying: "We are confident that we can build on this solid start and that the prospects for the rest of the year remain positive."
He said the group was making progress on its plan to raise £800m by selling off non-core businesses after it sold its asset management arm to Friends Ivory & Sime last week.
He said: "This is the first of a series of transactions and progress is being made on the others. We will not make public which parts of the business are to be sold until an agreement to sell has been reached."
