RSA reports ‘challenges’ in wholesale, international commercial markets
UK-based RSA is experiencing “challenges in wholesale and international commercial markets from US and Caribbean cat activity,” according to a Nov. 2, 2017 trading update.
The company added that the impact on market pricing trends from these events is as yet unclear.
Earnings per share in the first 9 months of 2017 were nevertheless ahead of 2016 “though held back by Q3 underwriting results”.
“The progress at RSA overall leaves Group profits ahead of the same period in 2016 though by less than we had targeted,” said CEO Stephen Hester.
Weather losses in the third quarter include a provision of £50 million against US & Caribbean cat events (booked in the UK business segment). Claims notifications for these events are still developing, and RSA expects this provision “to increase somewhat”. RSA’s reinsurance protection provides “good cover for Q4 ‘event’ losses overall”, according to the statement.
UK large losses for the first nine months of 2017 are elevated in the marine and international portfolios, which constitute around 25 percent of UK reported net written premium, and certain UK domestic broker schemes. Underwriting actions are underway to improve performance for 2018.
“We are continuing to drive business enhancements across the Group, whilst taking further underwriting action in some portfolios to improve performance for 2018,” Hester said.
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