RSA shares rise as net written premiums grow in first quarter

Insurance group RSA impressed investors on Thursday with a positive start to the year as premium income returned to modest growth.

Core group premium income, otherwise known as net written premiums (NWP), was up 1% over last year in the first quarter at £1.48bn on a constant currency basis.

However, the strength in the pound compared with last year meant that reported NWP was down 6%.

Profits were higher than the first quarter of 2014 as a result of disposal gains in Singapore and Hong Kong, and "a little ahead of our plan", RSA said.

The company said insurance markets during the period continued to be "competitive but navigable" with pricing holding up well in Scandinavia but mixed in the UK and Canada.

RSA said its underlying current-year loss ratio was better than the year before, but still slightly behind its target.

Chief executive Stephen Hester said the group made "encouraging progress" in the first quarter, as the turnaround he was brought in to oversee continued.

“Lower interest rates and currency moves in our key territories continue to have adverse impacts, whilst insurance markets remain competitive. The path to high quality outperformance will not be smooth or easy, but our focus on that goal is clear," Hester said.

The stock was up 2.2% at 427.3p by 08:47.