RSA insurance written premiums flat, underwriting profit 'up strongly'
RSA Insurance reported flat net written premiums for the year to date on Thursday but said underwriting profit was up "strongly".
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In an update for the third quarter, the company said insurance market conditions were largely unchanged.
"The markets are competitive overall, although accommodating underwriting actions in those portfolios responding to industry losses," it said.
Group net premiums were flat overall versus the same period in 2018 at £4.9bn, and broadly in line with the group's plans.
Premiums in Scandinavia and Canada were up 2% and 4%, respectively, but in the UK and international segment, premium income fell 3%. RSA said this was broadly in line with its plans and reflected the impact of pricing and underwriting actions in 2018 and in 2019 to date.
Meanwhile, operating profit for the first nine months was up, including and excluding exit portfolios, with an improved combined ratio and slightly lower investment income.
Chief executive Stephen Hester 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."
At 0905 GMT, the shares were up 2.8% at 547.00p.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "The defining feature of Stephen Hester’s time at RSA has been the focus on doing the basics well. This quarter is no exception, with the group delivering underwriting discipline after exiting some markets, and good cost control.
"That’s a solid start, and might be the best option in a very competitive market - better to write fewer profitable contracts than more unprofitable ones - but ultimately RSA needs to get total premiums moving forwards. That’s part of the equation that doesn’t seem to have been cracked yet. Cost savings can only boost profits for so long, eventually you need to start attracting a growing customer base."