Royal & Sun Alliance (RSA) has started a radical overhaul of its business, following a slump of 40% in the company's shares.
The insurer is to cut 1200 jobs from its life operations in a bid to free up capital to expand its general insurance operations. The move, however is viewed by some in the City as coming too late and have been calling for the head of Bob Mendelsohn, RSA's chief executive.
Following the attacks on the World Trade Centre, RSA reserved an additional £66 million in anticipation of an increase in potential claims. The group operating result dropped from £366 million in 2001 to £301 million.
RSA has said for some time now that it planned to shift its focus away from life and pensions to general insurance, and that it was on course towards its target of £800 million, which will be injected into the general insurance book.
However, analysts have voiced disappointment at the results and say that the insurers will need to show a radical improvement if it is to win back confidence in the City.