British insurer Royal & SunAlliance has recorded a first-quarter profit of $288 million, and says the sale of its Australasian businesses has helped it with its capital problems.

With a combined ratio of 99% – down from 104.2% last year – the company may have turned the corner. But some analysts say R&SA’s result has been helped by a low level of weather claims, and that the combined ratio will be difficult to keep below 100%.

CEO Andy Haste said the company can’t look at one quarter in isolation, “particularly when [R&SA] has benefitted from strong results from operations that we have already disposed of or are in the course of disposing”.

Branding the company’s UK personal lines business “unacceptable” and its Canadian operations “unsatisfactory”, Mr Haste said there were good signs from its Scandinavian and US companies.

“I recognise that there is still a lot to be done, but I also believe that the group can emerge from this period of change with a better, more sustainable business.”