British general insurer Royal & Sun Alliance (RSA) posted a first-quarter profit above market expectations today and said it expected to meet its 2006 operating target.
Britain's second-largest commercial insurer said its operating result rose to £207 million (€302 million).
The group's shares traded 2.5 per cent higher in early dealings at 143-3/4 pence - not far from a near four-year high of 146-1/2p set in March.
The stock has risen nearly 10 per cent since the start of 2006.
RSA's earnings were boosted by an improved underwriting performance as relatively stable pricing along with lower weather claims saw its underwriting result increase by 13 per cent to £71 million.
RSA's troublesome US operation, which has cost hundreds of millions of dollars due to escalating claims, swung to a profit of £4 million during the first quarter, from a loss of £14 million in the same period last year.