Royal & SunAlliance has little to smile about after posting a $30 million loss for 2001. This compares with a $792 million profit last year.

The second-largest British general insurer saw its return on investments fall from $1.2 billion to $43.7 million. It also took a $587.4 million hit from World Trade Centre losses. Reserving for asbestos claims absorbed another $1.04 billion.

The company also recorded an underwriting loss, with a combined operating ratio of 112% – well short of the target of 103%.

CEO Bob Mendelsohn said the bottom-line result “masks the solid performance of large parts of our general insurance business around the world”.

Mr Mendelsohn has pledged to continue his strategy of selling non-core assets, which in this case includes R&SA’s life insurance business. The asset has been on the market – and off again – for at least six months. Earlier this month the company said it was on track to sell $2.1 billion in non-core assets.