Market reaction to Royal & SunAlliance's (R&SA) 2002 results has been lukewarm, with shares up by 2%.
The insurer earlier announced a 62.5% cut in its dividend after 2002 profits were lower than expected.
Market reaction to Royal & SunAlliance's (R&SA) 2002 results has been lukewarm, with shares up by 2%. The insurer earlier announced a 62.5% cut in its dividend after 2002 profits were lower than expected.
The insurer decided to distribute 2p a share, compared with estimates of double that figure.
The underlying performance of the group was perceived as good by analysts as it posted a combined ratio of 102.8%, meaning it only makes a small loss on its insurance policies.
At UK level its performance on personal lines was not as robust, where it posted a ratio of 109.5%. However on UK commercial lines it posted a ratio of 94%, meaning it makes a profit on this area of its business.
R&SA posted underlying full year operating profits of £226m, up from a restated profit of £16m 12 months earlier. However most analysts had expected £260m, according to Reuters.
R&SA also said it was making provisions for the £494m shortfall in its pension fund. The insurer said it would top-up the fund by £30m a year over the next ten years.
Acting group chief executive Bob Gunn said: "While 2002 was not a year of strong performance for the group, we have some excellent lines of business that produced another year of good profitable results and we believe that we have taken actions to address those businesses where performance has been disappointing.
"We firmly believe that our long-standing strategy of focusing on general insurance is correct, the outlook for the general insurance industry is very good at the moment and we are determined to capitalise on it."
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