Royal & SunAlliance's (R&SA) stock lost 5% of its value today as stockmarkets reacted to a performance that even the company described as "disappointing".
The shares, which last year were worth 550p each, were this afternoon trading at 260p - a 14p decline since yesterday.
Chief executive Bob Mendelsohn admitted the company's performance was not acceptable after announcing operating results that slumped to just £16m in 2001 from £462m the year before.
A company statement said: "2001 was a very difficult year for us and we are disappointed with the results."
Mendelsohn himself was critical of the company's failure to hit its general insurance target of a combined ratio of 103%.
The combined ratio shows the sum of claims and expenses divided by premiums earned. A figure more than 100% shows an underwriting loss.
Including the cost of the World Trade Centre losses, R&SA managed just 112%.
Mendelsohn said: "Overall our underlying combined ratio of 104.7% (excluding the cost of the World Trade Centre, discontinued and disposed businesses and asbestos and environmental provisions) does not meet our target and is obviously not at the level that I find acceptable."
