UK-based RSA reported continued strong growth and financial strength in its interim management statement covering the first three months of 2012.
Highlights included the following:
• Net written premiums of £2.2 billion [$3.565 billion] up by 5 percent with all regions delivering good growth
• Rating action and increased volumes drive the top line forward
• IGD surplus remains strong at £1.3 billion [$2.106 billion]; coverage unchanged at 2.0 times
• Net asset value per share including IAS 19 of 107p [$1.74] compared with 104p [$1.68] at 31 December 2011
• Continue to expect to deliver good premium growth and a combined operating ratio (COR) of better than 95 percent in 2012
Highlights broken down by the sectors in which RSA operates were given as follows:
• Scandinavia net written premiums of £667 million [$1.08 billion] up 1 percent – 3 percent at constant exchange
• Canada net written premiums of £303 million [$490 million] up 4 percent – 3 percent at constant exchange
• UK and Western Europe net written premiums of £937 million [$1.518 billion] up 3 percent – 3 percent at constant exchange)
• Emerging Markets net written premiums of £281 million [$455 million] up 20 percent – 21 percent at constant exchange
• Associates net written premiums of £78 million [$126 million] up 15 percent – 20 percent at constant exchange
The bulletin noted that “growth has been led by Emerging Markets, which has again been driven by an excellent performance in Latin America, and good performances in Personal lines in Canada and Scandinavia and Commercial lines in the UK.
“This has been partially offset by reductions in UK Personal Motor and Italy. We continue to benefit from our focus on Specialty and premiums grew by 6 percent at constant exchange across the Group.
“For the full year, we remain confident of delivering good premium growth, a COR of better than 95 percent and investment income of around £500 million [$810 million].”
Group CEO Simon Lee commented: “We have made a good start to the year, building on the organic growth momentum generated in 2011 with premiums up by 5 percent. Growth has been led by our areas of key strategic focus including Emerging Markets, where Latin America was a particular highlight, global Specialty lines and Household and Pet in the UK. For the full year, we remain confident of delivering good premium growth and a combined operating ratio for the Group of better than 95 percent.”
The complete report and further information may be obtained on the company’s website.