Insurer reports significant NWP growth of 19%
TORONTO, Feb. 23, 2012 /CNW/ - Leading property and casualty insurer RSA Canada today announced net written premiums of $2,358m in 2011, representing exceptional growth of 19%, and an underwriting profit of $185m, a 45% increase over prior year. The company reported a solid combined operating ratio (COR) of 91.6% despite the impact of severe weather conditions and catastrophic events including Slave Lake.
RSA Group has delivered both a solid bottom line performance, reporting net written premium growth of 9% to £8.1bn, a COR of 94.9% and an underwriting result of £375m, up 58% over prior year. Operating profit was up by 38% to £884m, reflecting the Group's continued delivery of strong profitability despite ongoing market challenges.
RSA Canada continued to outperform its peers in 2011 through a combination of acquisition and organic growth across Personal and Commercial lines. In Personal lines, including Johnson, net written premiums grew 9% to $1,609m with a COR of 92.3%. These results were supported by organic growth, market leading rate, strong retention and new business wins. The underwriting result of $118m is a 51% increase over prior year with large weather events being more than offset by strong results in auto, including the positive impact of Ontario auto reforms, and continued favourable prior year development.
Despite a soft and heavily competitive Commercial market, net written premiums in RSA's Commercial lines grew 50% to $749m, with a COR of 89.8% and an underwriting result of $67m. Overall Commercial lines performance was primarily driven by the acquisition of GCAN, supported by organic growth and significant new deals.
"2011 was a landmark year of positive change and growth for RSA Canada," says Rowan Saunders, President and CEO. "We outperformed the market and drove top and bottom line results by remaining committed to our strategy and our evolution as a business. In 2011 we broadened our appetite and grew through acquisitions, strong rate, retention and new business wins. The continued success of our strategy has enabled us to bring a true end to end solution to the Canadian marketplace."
"RSA Canada's performance in 2011 underscores its continued leadership in the Canadian market," said Simon Lee, RSA Group Chief Executive. "Canada is an important growth driver for the Group and I look forward to continued profitable growth and success as we move into 2012."
With a 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. RSA has major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East, Latin America and Central and Eastern Europe and has the capability to write business in around 140 countries. Focusing on general insurance, RSA has around 23,000 employees and, in 2011, its net written premiums were £8.1 billion.
About RSA Canada
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, RSA Travel Insurance Inc./Assurance Voyage RSA inc., and is part of the RSA group of companies headed by RSA Insurance Group plc. RSA Canada employs approximately 3,900 people and is represented by a large network of brokers across the country. In 2011, the Canadian Group wrote $2.6bn in direct premiums with assets exceeding $7 billion. RSA is a trade name of Royal & Sun Alliance Insurance Company of Canada. "RSA" and the RSA logo are trademarks used under licence from RSA Insurance Group plc.
This press release may contain 'forward-looking statements' with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition, performance results, strategic initiatives and objectives. Generally, words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "continue" or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group's control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group's forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.
Notes to editors:
|Local currency/£||12 Months 2011||12 Months 2010|
* Figures are prepared in accordance with IFRS.
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Corporate Communications Consultant, RSA