RSA's turnaround 'on track', reports flat H1 premium income
British insurer RSA's efforts to tidy up its portfolio after woes in its commercial unit last year led to a "solid first half", with underwriting profits up year-on-year.
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RSA, which reported big losses in several specialist units in the second half of its prior trading year, turned in a flat premium income of £3.2bn but group total operating profits still fell 7.8% to £280m after closing or reducing multiple lines of business.
The FTSE 100-listed firm said its underwriting actions were "on track", with first-half underwriting profits up 70% across the board. Excluding exits, underwriting profits came to £181m.
RSA upped its first-half dividend 3% to 7.5p per share.
Chief executive Stephen Hester said: "RSA is reporting a solid first half 2019. Particularly pleasing is the improvement in current year underwriting results, which represent our best first half in the last 10 years. Our Personal Lines business continues to drive this performance.
"While the full earned effect of underwriting, pricing and portfolio changes will show next year, at this stage we are on or ahead of schedule in each region for those planned actions."
Hester did note that there would be some headwinds from lower bond yields and weaker prior year development, but said he expects the group to make "continued progress overall".
As of 0900 BST, RSA shares had picked up 2.64% to 575.40p.