More Than parent RSA Insurance said "aggressive" rate cuts in the motor cover market saw its UK business come under further pressure in the first three months of the year.

Growth in UK net written premiums ground to a halt in the quarter to March 31, at £726 million against £725 million a year earlier, after a 4% slide in RSA's motor insurance arm.

The group has been reducing its exposure to the highly competitive UK motor market and prioritising profit over sales volumes, but said industry-wide moves to slash rates continued to make it a "challenging market".

It said new business volumes had stabilised for motor insurance, following a 19% plunge in 2012, but the group still increased rates - 4% higher year-on-year in March against rises of 10% in December.

The pressure in its motor market offset progress on household insurance and pet cover, where premiums rose 1% and 5% respectively. Commercial premiums also remained flat at £396 million.

RSA disappointed investors earlier this year when it slashed its full-year dividend by a third after a 6% fall in annual operating profits to £684 million after taking a hit on last summer's UK floods and two earthquakes in Italy.

UK premiums rose 2% to £3 billion last year, but underwriting profits were £39 million against £62 million a year earlier, primarily due to the impact of weather in the first half

But the group sought to assure it had made an "encouraging" start to the year thanks to a better performance from its overseas markets.

RSA, which employs 23,000 staff worldwide, said total group premiums rose 5% at constant exchange rates to £2.3 billion after an 18% leap in Canada and a 16% hike in emerging markets including Asia and Latin America.

Its Scandinavian business also reported a 4% rise in premiums.

Nick Johnson, an analyst at Numis Securities, said RSA delivered a "solid update" overall despite the UK pressures.