Royal & SunAlliance (RSA), the UK insurer, has posted a 97% fall in operating profit to just £16m (€26.2m) in 2001, compared with £462m in 2000.

The firm was hard hit by both the September 11 attacks on the US, after which it faces claims worth about £215m, and by asbestos-related claims, which are costing a further £284m in claim provisions. RSA said that losses from some of its unprofitable businesses, which it is now planning to sell, contributed £235m.