MORE Than insurer RSA Insurance today reported a larger-than-expected rise in first-half profits as international growth offset flat trading in the UK.

Pre-tax profits for the six months to June 30 rose 23 per cent to £292m after overseas premiums jumped 23 per cent to £1.63bn.

RSA's toughest market was the UK, with premiums ahead one per cent, at £1.4bn, amid strong competition.

RSA pledged to target profitable growth by `taking the right action' on rates and withdrawing capacity from certain areas. It said it had increased personal household and motor rates by five per cent.

The company's shares were three per cent higher as analysts said the nine per cent improvement in operating profits to £440m bettered consensus forecasts.

The group, which changed its name from Royal & Sun Alliance in May, has turned around its fortunes after restructuring to focus on general insurance in the UK, Scandinavia and Canada.