February 23, 2017 / 7:17 AM / 6 months ago

BRIEF-Insurer RSA 2016 operating profit rises 25 pct to 655 mln stg

Feb 23 (Reuters) - Rsa Insurance Group Plc

* Fy operating profit rose 25 percent to 655 million stg

* Final dividend 11 penceper share

* Total dividend 16 penceper share

* Underlying eps 39.5p, up 42%.

* Operating profit £655m, up 25%

* Record underwriting profit and combined ratio (£380m, up 73%, 94.2% versus 96.9%)

* Statutory net profit £20m, impacted by non-capital charges for legacy disposal

* Investment income £369m (2015: £403m), fell 8% reflecting impact of disposals and low bond yields, partly offset by fx translation benefits

* Non-Capital charge of £204m for disposal of legacy liabilities

* Tangible equity 1 £2.9bn (31 december 2015: £2.8bn)

* Solvency ii coverage ratio of 158% after final dividend (31 december 2015: 143%), at upper end of 130-160% target range

* Underlying return on opening tangible equity 1 of 14.2% (2015: 9.7%), at upper end of 12-15% target range

* Cost reduction programme is ahead of original targets with c.£290m of gross annualised savings achieved by end of 2016

* Today we are upgrading cost savings target for a third time to >£400m gross annualised savings by 2018

* Increasing our medium term rote 1 target range to 13-17% (from 12-15% previously

* Rsa is relatively insulated from brexit impacts with c.70% non-sterling profits and separate, locally regulated, european subsidiaries

* Net written premiums core group 6,281 million stg Source text for Eikon: Further company coverage:

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