Insurance group RSA has slashed its interim dividend by a third, despite delivering an increase in profits, but said it hoped to begin raising payouts as earnings growth continues.
The owner of the More Than brand said it expects to incur costs of between £25 million and £40m at its Canadian business following last month’s flooding in Toronto, but chief executive Simon Lee said Canada remains a “highly attractive” market for the group.
Pre-tax profits for the six months to 30 June grew 14 per cent year-on-year to £250m. Shareholders will receive an interim dividend of 2.28p a share, down from 3.41p last time and in line with the reduction to last year’s final dividend.
Lee added: “It is the board’s intention to grow the dividend in line with the anticipated underlying growth in earnings.”