The U.K.’s Royal & Sun Alliance Insurance Group announced yesterday that it now expects its losses from the September 11 attacks on the U.S. will be around £200 million ($289 million) net of reinsurance and before tax provisions, £50 million ($72.3 million) more than its original estimation.
RSA indicated that it had reviewed expected claims from aviation, property, workers’ compensation and business interruption policies with its clients, and was therefore raising its loss estimates in accordance with new information. It indicated, however, that it would still be some time before a definite amount could be established.
Almost 25 percent of RSA’s premium income is generated in the U.S., and its strategy is aimed primarily at increasing its property/casualty market share. It’s been looking for a buyer for its U.K. life business, but has so far been unsuccessful. Most analysts now feel that the life business will be even more difficult to sell for a decent price, and RSA management has indicated it may explore other options such as reinsurance or securitization for its existing policies.
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