RSA said it won't pay an interim dividend but said it is targeting a restart to payments at the end of the year.
RSA turned to Hester in February after a rise in claims and an accounting scandal at its
Since then, Hester has been selling off non-core business in order to tighten up its areas of focus, with
In a statement, RSA said it made a
The fall came as income declined to
Expenses fell to
"While first half profits are modest, they reflect further balance sheet and reserve clean-up as well as above-normal weather costs. Underlying business trends, together with the actions outlined, are supportive of achieving the medium-term customer, capital and shareholder targets we have set," Hester said in a statement.
RSA reiterated its guidance of up to a 10% reduction in premiums during 2014, but cautioned that the strengthening of sterling during the first half likely means that the reduction on a reported exchange rate basis is likely to be greater. In addition, the insurer said written premiums are likely to fall further, but more modestly, in 2015, following its string of business disposals.
Nevertheless, RSA said it expects underwriting profit to improve in the second half of 2014 driven by further improvements in the current year underlying loss ratio, together with the benefit of the cost saving actions already taken. RSA reported a
The insurer also noted that there will be gains as its disposals complete during the second half, but warned of further charges as it continues to restructure.
Shares were Thursday quoted down 1.9% at
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