RSA profits spike; bounces back to underwriting profit

UK insurer RSA has reported a jump in profits for the first half of 2015 while adding that it has bounced back to underwriting profit.

The insurer posted profits of £215 million in the first half of 2015, compared with £6 million in the first half of 2014.

Its combined ratio also posted an improvement to 96.9 percent, compared with 100.3 percent in the same period of the prior year.

RSA returned to underwriting profit in the period, reporting a profit of £101 million in the half, compared with a £23 million loss in the first half of 2014. RSA said this was driven by record underwriting profits in the UK and Canada and strong results in Scandinavia, although it was partially offset by a £16 million loss in its Irish division.

Stephen Hester, RSA Group chief executive, said: "We are making fundamental improvements to RSA, as promised. These interim results show excellent progress on all key measures. The foundations are being laid to improve still further.

“Profits are up strongly on both a headline and underlying basis. Premium income has been stabilised, underwriting and cost levers are responding positively. The interim dividend is restored and progress continues on strategic reshaping and capital strength.”