RSA troubles can be fixed, says its CEO

Insurer RSA has endured some tough times in recent years, but Stephen Hester, its group chief executive, said its problems should be relatively easy to fix and he is confident in its long-term potential.

Speaking at an annual lecture held by Airmic, the body that represents UK corporate insurance buyers and risk managers, in London this week, Hester gave his views on the insurance market and explained how RSA is turning things around.

“My mission, together with my colleagues, is to turn the company around and to simply realise the potential of RSA. I believe the potential is very high. RSA has made some common mistakes, and that is why I showed up in the first place,” he said.

He explained that its mistakes should be easily fixed. According to Hester, RSA spread itself too thin, partly by hunting for growth while neglecting its foundations.

“Our strategy now is to only compete where we can win and to make sure we then win where we compete. That strategy is the foundation of the strategies of all successful businesses in mature industries with no patent protection.”

Hester believes that the customer should be the central focus of any business.

“Our job as a business is not actually to figure out how to make money out of customers but how to provide what customers want. From that foundation we can fulfil other stakeholder needs,” he said.

In revised form, RSA may not look enormously different, Hester said, but it will be better.

“It is definitely more of the same and better. You can and should expect us to do our job. You should expect us to be hungry for good quality business and should hold us to account. We are looking to establish a record for winning for customers and through that, winning for shareholders.”