RSA Insurance Group (LON:RSA) announced Thursday trading results reflecting a jump in profit, which was cheered by investor a drove a rise in the share price.
Underlying pre-tax profits were up 12 percent to £620 million compared to £556 million in 2016. There was a strong performance in Scandinavia with operating profit at £389 million and £159 million in Canada.
A 23 percent increase in the full year dividend was also announced, with shares at 13p.
“In a tough period for insurance markets, we are delighted to produce another year of growing profits, dividends and return on equity for shareholders. Higher premium income also highlights the positive customer response to what we are offering,” said Stephen Hester, RSA Group chief executive.
Despite the challenging conditions, the British insurer reported a premium income up 4 percent to £6.7 billion, marking a new record for the company in 2017.
In terms of payouts,  the company suffered £72 million in losses from the US/ Caribbean hurricanes and Mexican earthquakes last year.
“RSA’s overseas divisions achieved excellent results in 2017, partly offset by poor underwriting figures in our UK/ London market business as flagged earlier in the year.”
“The Group’s performance ambitions remain high and we target further improvement in 2018 and thereafter,” added Hester.
Shares were up 2.64 percent, trading at 629.2p, as of 15:00 (GMT).