LONDON Feb 23 Insurer RSA posted a 25
percent rise in 2016 operating profit to an above-forecast 655
million pounds ($814.49 million) due to strong performance in
most of its core businesses, and raised its target for return on
Analysts in a company-supplied forecast had expected an
operating profit of 626 million pounds.
RSA, which has been undergoing a restructuring programme
under ex-RBS boss Stephen Hester, raised its target for return
on tangible equity to 13-17 percent from a previous range of
12-15 percent, and said in a statement on Thursday it hoped to
"perform in the upper part of this range".
RSA said its cost-reduction programme was ahead of original
targets and it was upgrading that target for a third time to
more than 400 million sterling of gross annualised savings by
2018, from a previous target of more than 350 million sterling.
The insurer said it would pay a final dividend of 11 pence
per share and total dividend of 16 pence, up 52 percent from a
year earlier and above a forecast 15.1 pence.
($1 = 0.8042 pounds)
(Reporting by Carolyn Cohn; editing by Simon Jessop)