The divestment strategy of troubled UK insurer Royal & SunAlliance (R&SA) have helped it turn the corner, with its management saying its half-year results and recent asset sales have put it in a good position to achieve a strong second half. The insurer’s pre-tax operating profit dropped 14% to £310 million in the first half, beating most analysts’ expectations. It posted a net loss of £83 million, compared with £97 million for the previous corresponding period.

CEO Andy Haste is continuing to sell business units – what is now Promina was sold off two years ago – and is underwriting fewer policies. The company has suffered four years of losses from its US workers’ compensation business, as well as dismal share prices and asbestos claims.

Mr Haste has raised more than £2 billion by selling R&SA’s life insurance units. “Together with the work to optimise our debt structure it will strengthen our capital position and gives us confidence in complying with the new regulatory regime,” he said.

“We’ve made strong progress on executing our strategy during the half while producing another set of good results from our ongoing businesses. We have completed our long-term goal of exiting life business to focus on general insurance. This is a major step forward and will significantly de-risk our balance sheet.”