RSA pulls out of ‘extremely competitive’ £120m personal lines motor market in UK
UK insurer RSA is exiting the UK personal lines motor market that it describes as “extremely competitive” in a bid to simplify its business and drive cost efficiencies to support growth in its core business lines.
After a thorough review, Intact Financial and its subsidiary RSA have decided to pull out of the UK personal lines motor market, representing approximately £120 million of annual premium for the company.
“The personal lines motor market in the UK remains extremely competitive and requires significant scale to drive meaningful outperformance,” management explained in a statement.
The move is aimed at improving the strength and sustainability of its UK & International business. RSA expects to release approximately £60 million of capital held against motor-related insurance risk over time as the portfolio runs off. Furthermore, it anticipates “muted top-line growth” to deliver a low 90s combined ratio for the UK&I.
The exit includes an agreement to introduce MORE THAN direct motor customers to Swinton Insurance, a brand of Atlanta Insurance Intermediaries and part of Ardonagh Retail, upon renewal.
“When we completed the acquisition of RSA, we were clear that we would take necessary actions to drive sustainable outperformance in UK&I,” said Charles Brindamour (pictured right), chief executive officer, Intact Financial Corporation. “Today’s announcement represents a further step in delivering against our strategic roadmap to optimize our footprint around personal lines Home and Pet, and our Commercial and Speciality lines businesses.”
Ken Norgrove (pictured left), chief executive officer, RSA UK & International, added: “Our primary focus now is on delivering an orderly transition that supports our colleagues and customers. We have incredibly talented people working in this business, and we’re committed to treating them with fairness and respect.”
Ardonagh Retail CEO Ian Donaldson commented: "We are proud to confirm that Atlanta has been selected to transfer the renewal rights of RSA’s direct motor line of business for customers that RSA introduce to Swinton Insurance. We have worked in close partnership with RSA for a number of years including the previous successful transfer of the renewal rights of their direct van line of business, and believe Atlanta and Swinton Insurance is the perfect home for motor. We look forward to working with RSA over the coming months on a smooth transition and to welcoming their 170,000 customers to our ever-expanding Group.”
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