RSA plans to pull out of several international business lines run out of London which it says are unlikely to produce the returns which the British insurer is seeking following a September profit warning.
Closing international construction, international freight and fixed price marine protection and indemnity insurance was part of efforts to streamline international exposure and improve underwriting, pricing accuracy and risk management, RSA said.
The decision to ditch the businesses followed RSA’s assessment that they were “unlikely to satisfy the group’s profitability requirements in the foreseeable future.”
It mirrors similar action by rivals also adapting to tough market conditions, including Beazley and Hiscox.
RSA said it would instead focus instead on international hull, international cargo and transportation, international property and international engineering and renewable energy.
International marine cargo and international marine transportation would be restructured into a single unit under new leadership and exposures would be cut “significantly” to focus on areas where sustained profitability could be achieved.
RSA said it expected to reduce premiums written through the London market by around a third year on year in 2019.
Scott Egan, chief financial officer at RSA, said more details would follow at full year results and that not more than 50 roles would be affected by the changes. At the end of 2017 RSA had 12,600 employees.
(Additional reporting by Noor Zainab Hussain; editing by Alexander Smith)
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