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Insurer Royal & Sun cuts 700 jobs Insurer Royal & Sun cuts 700 jobs
(about 1 hour later)
Royal & Sun Alliance (RSA) is to cut 700 jobs, 500 in the UK, as part of plans to reduce costs by £70m.Royal & Sun Alliance (RSA) is to cut 700 jobs, 500 in the UK, as part of plans to reduce costs by £70m.
The insurance group's chief executive Andy Haste said the firm would work with its unions to try to minimise the necessary number of redundancies.The insurance group's chief executive Andy Haste said the firm would work with its unions to try to minimise the necessary number of redundancies.
RSA made the announcement after it reported profits for the first half of the year that were better than stock market expectations. The firm - which employs 10,000 people in the UK - also said the recent floods would cost it about £120m.
The firm added that the recent floods would cost it about £120m. However, RSA said it did not see the cost of the floods triggering a general rise in customer insurance bills.
RSA employs 10,000 staff in the UK. "It's possible some people's rates will go up, but it's not inevitable," Mr Haste said.
Its pre-tax profit for the six months to 30 June fell 2.3% to £338m from £346m a year earlier. 'Over-delivering'
RSA's comments came as the insurer reported better-than-expected profits for the first half of the year.
Group operating profits hit £403m ($816.9m) against expectations of about £350m. Pre-tax profits for the period 2.3% to £338m.
It added that it had achieved its annual cost savings target of £130m ahead of schedule, and it now intended to make a further £70m in cost cuts by the middle of 2008.
Analyst Kevin Ryan of bank ING said RSA's results were "very good".
"I view them as over-delivering. They've done more than it says on the tin," he said.