RSA tipped as a share to buy

The Telegraph’s Questor says to buy RSA shares after higher than expected growth in premium and the fact hat it still makes a profit and has a policy of increasing dividends.

It says: “RSA's shares are trading on a December 2010 earnings multiple of 10.2 times, falling to 9.4 next year. First recommended at 117.6p in June, they have risen 14%, compared with a market up 6%.

“Investors who bought on the recommendation would have locked in a 7.3% yield but the shares are still yielding 6.4%. Buy for the income.”