RSA buys protection against higher pension costs

* Deal to deliver profit from 2010, no impact in 2009

* Deal covers one third of total pension liabilities (Adds more details)

LONDON, July 14 (Reuters) - British insurer Royal & Sun Alliance (RSA.L) said on Tuesday it has insured itself against potential increases in the cost of funding one third of its staff pensions scheme, delivering an earnings boost from 2010.

RSA, best known for its "More Than" motor and home insurance business, said the move would eliminate the risk of increased cash funding on 1.9 billion pounds ($3.1 billion) of its pension liabilities.

The insurance deal, arranged by investment bank Goldman Sachs (GS.N), will generate a "small" profit from 2010, but will have no earnings impact this year, RSA said. Transaction costs were not disclosed.

By 1215 GMT RSA shares were up 1.4 percent at 117 pence, while the FTSE 100 share index <0#.FTSE> was 1 percent higher.

"This transaction further de-risks the impact of the UK pension schemes on the group's results and balance sheet," Chief Executive Andy Haste said in a statement. ($1=.6147 pounds) (Reporting by Myles Neligan; Editing by Greg Mahlich)