Royal & Sun Alliance says it is delivering on its strategy after unveiling details of an improved performance in 2004.

The group, which operates the More Than brand, is focusing on its position as the UK's second biggest general insurer after taking steps to de-risk its balance sheet following losses for its United States business.

R&SA said its operating result for the year, which includes forecasts for investment returns, was £ 456 million compared with £140 million a year earlier.

The combined operating ratio (COR) from ongoing business - a key industry measure of profitability - improved to 94 per cent from 96.8 per cent.

COR, which represents the amount of money spent paying out on claims and in costs for every £1 of premiums taken, improved in the UK to 92.5 per cent from 94.8 per cent following an "excellent" performance in commercial and improved results from personal insurance.

Chief executive Andy Haste said the year had been one of "substantial progress" for the group.

The former boss of Axa Sun Life added: "We've driven strong operational performance and delivered against the strategic commitments we set out for the group eighteen months ago.

"Our strategy for the future is clear - to run general insurance business where we have strong market positions and where we can deliver sustainable profitable performance."

The group, which has been hit by asbestos claims and compensation payments in the US, is looking to concentrate on the UK, Canada and Scandinavia.

Outsourced office service specialists TNT Managed Services has bagged one of the UK's largest ever mailroom contracts with Royal & Sun Alliance.

TNT Managed Services, a division of business-tobusiness delivery experts TNT Express Services, has brokered a three- year multi-million pound deal to operate Royal & Sun Alliance's UK mailrooms, employing more than 100 people.

TNT provides a daily mail delivery and collection service for Royal & Sun Alliance staff at 16 sites around the country.