Royal & SunAlliance (R&SA) chief executive Duncan Boyle revealed the UK general insurance business would get a £500m windfall from the sale of the UK life arm.
On the announcement of its half-year results, Boyle said that the UK business would receive half of the £1bn freed up from the recent life business sale.
For the first half, the UK general insurance business recorded a combined operating ratio (COR) of 93.5%, while net premiums written fell £100m to £1.3bn.
R&SA's UK commercial business posted a COR of 91.9%, in what Boyle branded a "stellar performance".
Commercial premiums fell 4% after increased competition at the top end during the first part of 2004.
In personal lines, R&SA achieved a COR of 97.4%, down from 100.3% in the same period last year.
Personal lines premiums fell 25% as a result of the early termination of its household deal with Halifax Bank of Scotland and the restructuring of its motor book, which Boyle said was now complete. "We would like to grow that now," he added.
More Th>n recorded a 3% increase in premiums written and a COR of 97.9%. On rates, Boyle said R&SA was still achieving increases in motor, household and liability, while commercial property was flat.
Boyle said. "We're now poised to grow both personal lines and commercial lines business with brokers."
