RSA shares rise on improved profit outlook

RSA Group shares rose more than 3 percent after the insurer said that operating profit for the first nine months was up, and that its large loss ratio was lower.

The company said profits were higher, both including and excluding exit portfolios, with an improved combined ratio and slightly lower investment income. RSA has previously announced it is leaving some businesses.

It said insurance market conditions were largely unchanged in the third quarter. “The markets are competitive overall, although accommodating underwriting actions in those portfolios responding to industry losses,” the company said.

RSA said exit portfolios, which were expected to run off substantially during 2019, generated a modest further loss in the third quarter.

Stephen Hester, RSA Group chief executive, said: “RSA’s results to end September are strong, and consistent with our plans for the period. Current year underwriting results have sharply improved, with all our regional businesses contributing. There is lots more to do – not least to finish 2019 well, with momentum into next year.”

The large loss ratio was 9.6 percent, compared with 9.9 percent a year earlier. RSA there had been “improvements in every region”.