RSA grows core businesses but cat losses hit
RSA Insurance Group has increased its net written premiums across its core business in the nine-month period ending September 30, but results were impacted by cat losses.
RSA's net written premiums for its core group business segments in the nine-month period ending September 30 were £4.6 billion, an increase of 6 percent from £4.3 billion for the same period in 2015.
Weather events for the core group in the nine-month period were £145 million, representing 9 percent of the net earned premiums, compared to 7.7 in the same period a year ago.
The UK & Ireland business reported net written premiums of £2.2 billion, a 1 percent increase year-over-year.
While the UK commercial lines saw modest growth over the prior year, UK personal premiums were slightly down YOY, excluding the impact of RSA's withdrawal from the broker motor channel.
Ireland, however, saw continued premium growth due to strong pricing increases as part of the RSA’s turnaround plan.
The Scandinavian business recorded net written premiums of £1.3 billion, an increase of 6 percent year-over-year.
While the Swedish business continues to grow, it was partially offset by lower Danish premiums due to the previously flagged Marine portfolio transfer to the UK and the non-repeat of a large multi-year renewable energy deal, together with slow market conditions overall.
Premiums in the Norway business were impacted by the previously flagged non-renewal of a large affinity motor contract, and competitive conditions in the commercial market.
RSA's Canada business reported net written premiums of £1.0 billion, a 1 percent increase year-over-year.
RSA said that conditions remain competitive in Canada, particularly in the commercial broker channel.
Stephen Hester, chief executive of RSA Group, commented: “We are very pleased with RSA's continuing progress towards our ‘best in class’ ambitions.
“Momentum in the business is excellent across the many improvements to customer service, underwriting effectiveness and cost efficiency we are driving through.
“Brexit provides us an attractive tailwind from overseas earnings translation, in the context of an otherwise challenging environment.
“While Q4 can be a bumpy underwriting period, RSA is on track for strong operating earnings increases for 2016 overall.”
