TORONTO, Aug. 6 /CNW/ - Leading home, car and business insurer RSA Canada
today reported half-year results for 2009 with growth of 2.5% and a combined
operating ratio of 93.1%.
RSA Group had a solid first half despite challenging market conditions.
Net written premiums were up by 4%, including impact of exchange rates, to
(pnds stlg)3.5bn. The combined operating ratio (COR) was 93.5% and the
underwriting result was up by 2% to (pnds stlg)183m.
In Canada, net written premiums were up 2.5%, excluding a reinsurance
benefit from the CNS acquisition in 2008. Underwriting profit was $5m ahead of
last year at $57m. And despite adverse weather conditions and a tough economic
climate we maintained a strong COR of 93.1%.
In Commercial Lines, premiums were up 1.3% to $228m with a COR of 81% and
an underwriting profit of $35m. This is a good result and demonstrates the
success of our commercial strategy and commitment to our market leading
technical expertise in underwriting.
In Personal Lines, the impact of weather-related claims activity and auto
regulations continue to affect our bottom line. Despite these factors,
premiums were up 3.1% to $621m with a COR of 96.7% and an underwriting profit
of $22m, including Johnson Inc.
The launch of new products and services contributed to our success in the
first half. We launched an enhanced Construction & Contracting proposition in
Commercial Lines, as well as several new Personal Lines propositions including
Business in the Home and Pet Insurance.
"We outperformed the market yet again with a solid financial
performance," said Rowan Saunders, President & CEO, RSA Canada. "We maintained
our focus on growing in our specialized segments and delivered sound results
despite severe weather and difficult market conditions. Although we believe
the economic climate will remain challenging, we are confident that we have
the right strategy in place to continue to deliver sustainable profitable
growth throughout 2009."
RSA Canada includes Roins Financial Services Limited, Royal & Sun
Alliance Insurance Company of Canada, Quebec Assurance Company, Johnson Inc.,
Western Assurance Company, Ascentus Insurance Ltd., Canadian Northern Shield
Insurance Company and is part of RSA Insurance Group plc. RSA Canada employs
approximately 3,100 people and is represented by a large network of brokers
across the country. In 2008, the Canadian Group wrote $1.8 bn in direct
premiums with assets exceeding $5.5 billion. Internationally, RSA Insurance
Group plc employs about 22,000 people and has the capability to write business
in 130 countries and in 2008 its net written premiums were (pnds stlg)6.5bn.
RSA and CNS are trade names of Royal & Sun Alliance Insurance Company of
Canada and Canadian Northern Shield Insurance Company, respectively.
Notes to editors:
Local currency 6 Months 6 Months 12 Months
/(pnds stlg) 2009 2008 2008
Average Closing Average Closing Average Closing
Canadian Dollar 1.80 1.91 1.99 2.02 1.96 1.77
(*) Figures are prepared in accordance with IFRS.
For further information:
For further information: Sarah Kennedy, External Communications
Consultant, RSA, Sarah.Kennedy@rsagroup.ca, (416) 366-7600 ext. 2987