UPDATE 2-RSA 9-mth premiums up 4 pct, sees encouraging signs

* Net written premiums up 4 pct

* Conditions still challenging, sees encouraging signs

* Confident of delivering COR around 95 percent for 2009

(Adds details, background)

LONDON, Nov 5 (Reuters) - Britain's RSA Insurance (RSA.L) posted a 4 percent rise in premiums for the first nine months and indicated it was seeing signs of recovery in international and emerging markets, though conditions remain challenging.

Britain's biggest commercial insurer, formerly known as Royal & Sun Alliance, said net written premiums totalled 5.03 billion pounds ($8.29 billion).

"While economic conditions remain challenging, we are now seeing some encouraging signs, particularly in International and Emerging Markets," RSA Chief Executive Andy Haste said. UK premiums dipped 3 percent, but that was offset by 8 percent growth in net written premiums in its international business, and a 7 percent rise in emerging markets.

The highly competitive UK market -- where RSA has said it will withdraw capacity if it cannot reach target returns -- showed signs of improvement, however, with rate increases in both personal and commercial lines.

UK personal motor rates were up 7 percent for consumers renewing in September 2009, against a year ago, confirming market hopes of a turn in the rate cycle.