LONDON
A lower than expected dividend payment hit shares of British motor and home insurer RSA on Wednesday, making it the worst performer in the FTSE 100 index and overshadowing above-forecast first-half profit.
Best known in Britain for its More Than brand, RSA has been selling businesses and cutting costs under Stephen Hester, the former boss of Royal Bank of Scotland who joined in 2014 to overhaul the insurance company. RSA said the restructuring was now complete. Some analysts had expected RSA to increase its dividend payout ratio, but the firm kept it at 40 to 50 per cent of earnings after reporting a better than expected operating profit of 360 million pounds ($475.5 million), led by strong performances in Canada and Scandinavia. RSA said it would pay an interim dividend of 6.6 pence, up 32 per cent but below a forecast 7 pence.
