TORONTO, Aug. 2, 2012 /CNW/ - RSA, one of Canada's leading property and casualty insurers, announced its half year results today, with net written premiums up 7% to $1.2bn, a record underwriting profit of $96 million, up 12% on the same period last year, and COR of 91.9%.
The Group reported solid performance in a challenging environment with net written premiums up 4% at constant exchange to $6.9bn (£4.3bn) and a COR of 95.2%.
RSA Canada reported strong top and bottom line performance across both Personal and Commercial Lines.
Personal Lines delivered net written premiums of $771 million, up 6% against prior year, with growth being generated by both Johnson and personal intermediated businesses. In terms of profitability, Personal Lines delivered an underwriting result of $60 million and COR of 92.9%, driven by strong portfolio management and a benign winter.
In Commercial Lines, net written premiums grew 10% to $409 million, driven by our Large and Specialty lines, along with continued strong retention. Good bottom line performances from all lines contributed to the underwriting result of $36 million and COR of 88.5%. "RSA Canada delivered another half year of market leading results despite continued economic stress and a challenging commercial market," says President & CEO Rowan Saunders. "Our commercial growth reaffirms the additional capability that last year's GCAN acquisition brings, and the anticipated close of our L'Union Canadienne acquisition this fall positions RSA as the insurer with the broadest national personal and commercial proposition, offering end to end solutions from coast to coast."
In June, RSA announced an agreement to acquire L'Union Canadienne from Co-operators General Insurance Company (CGIC), subject to regulatory approvals and other standard closing adjustments and conditions, solidifying RSA's position as the third largest general insurer in Canada and becoming a top 5 insurer in Quebec.
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/£||6 Months 2012||6 Months 2011||12 Months 2011|
* Figures are prepared in accordance with IFRS.
SOURCE: Royal & SunAlliance Canada
For further information:
Corporate Communications Consultant, RSA Canada