Nov. 6 (Bloomberg) -- RSA Insurance Group Plc, the U.K.'s second-largest non-life insurer, said nine-month revenue rose as sales in Canada and Scandinavia increased.

Net written premiums advanced 11 percent to 4.85 billion pounds ($7.7 billion) helped by a 21 percent jump in international sales, the London-based insurer said today in a statement. Earnings in the period to Sept. 30 matched the 4.9 billion-pound median estimate of three analysts surveyed by Bloomberg.

Overseas growth was helped by ``bolt-on acquisitions and favorable foreign exchange movements,'' RSA said in the statement. ``We expect trading conditions to remain challenging in a number of our markets and investment markets to remain volatile,'' the company said.

RSA, which gets more than half of its revenue from abroad, has limited the impact of a slowdown in U.K. sales by expanding in countries including Denmark and Canada. The company avoided losses on investments this year by purchasing more bonds and hedging against stock-market declines, which have eroded the value of other U.K. insurers' assets including Standard Life Plc and Amlin Plc.

The company said its financial position is ``strong'' after the value of its investment portfolio increased. RSA's investments were valued at 13.5 billion pounds as of Sept. 30, compared with 13.2 billion pounds at the half year. Foreign exchange gains helped offset mark-to-market value adjustments, the company said.

Value of Bonds

``The value of their mortgage bonds has gone up in the quarter whereas most others' have collapsed,'' said Andy Hughes, a London-based analyst at JPMorgan Chase & Co. ``Some people were very worried about Scandinavian mortgage bonds, but this could reassure them.''

In Scandinavia sales advanced 17 percent to 1.26 billion pounds. Excluding the effect of currency exchange, sales added 3 percent. In Canada, revenue rose 30 percent including the effect of exchange rates, and increased 18 percent excluding it.

RSA declined 4.2 percent in London trading. The stock has lost 3 percent this year, making it the fifth-best performer in the FTSE All-Share Nonlife Insurance Index, which has declined 1.4 percent.

To contact the reporters for this story: Kevin Crowley in London at kcrowley1@bloomberg.net

Last Updated: November 6, 2008 11:39 EST