UK-based insurer Royal & SunAlliance continues to struggle back to profitability after several years in the doldrums. Last week it posted an increase in yearly profits, boosted by cost savings and further progress in reducing losses in its US business.

The company – which floated off its Australian holdings several years ago, forming the basis of Promina – reported a profit of £698 million ($1.6 billion), well above its forecast of £647 million ($1.5 billion) for the year to December 31.

The profits figure represents a sharp jump on the £258 million ($610 million) profit achieved in 2004, when Royal & SunAlliance’s performance was dragged lower by underwriting losses in the US.

The company says it has now taken steps to “de-risk” its business in the US.