Strong growth in underwriting profit



The group?s operating profit got a shot in the arm from a 63% increase in underwriting profit to £119 million. RSA?s core group combined ratio, an insurer?s profitability measure calculated by dividing the sum of losses and expenses by earned-premium, improved to 94.3% for the half-year, compared to 96.4% a year ago. The strong performance led to an increase in interim dividend to 5p from 3.5p in the last year.
If it delivers on analysts’ earnings expectations I believe there is substantial upside to dividends in the long term.