Fitch ups Royal & Sun view to positive

Fitch Ratings said it changed Royal & Sun Alliance Insurance plc's outlook to positive from stable and affirmed its insurer financial strength rating at A- and long-term issuer default rating at BBB+.

The positive outlook is driven by a demonstrated stability in the company's underwriting profitability since 2005, Fitch said. Continuing strong earnings and effective management of the soft cycle over the next 12 to 18 months could trigger an upgrade, the agency said.

The ratings reflect good profitability in all segments in the last 18 months, with positive development in reserves and good progress in managing the challenging soft cycle conditions in a number of its markets. Offsetting these positive rating factors is the company's capital adequacy, which is below the current rating level, Fitch said.

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