RSA profit jumps in H1 after restructuring

RSA has reported a significant increase in first half profits after it completed its restructuring plan in February with the sale of its UK legacy liabilities.

The group underwriting profit increased 28 percent year on year in the first half of 2017 to £222 million. Operating profit was up 15 percent at £360 million over the period.

"RSA did well in the first half,” said Stephen Hester, RSA Group CEO. “We delivered outperformance, showing record underwriting results, attractive earnings and dividend growth with strong return on capital.”

RSA completed its restructuring efforts in February with the £834 million sale of UK legacy liabilities. 2017 actions also included the issuance of around £300 million of restricted tier 1 notes in Scandinavia and the retirement of around £600 million of existing high coupon debt. These actions reduced risk, improved capital resilience, and lowered interest costs, the company said.

Group premiums were up 11 percent year on year at £3.4 billion in the first six months. The combined ratio improved to 93.2 percent from 94.7 percent over the period.

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