RSA reports Q1 results
RSA has released its interim management statement for the first quarter of 2011.
The company said it has made a strong start to the year with the premium momentum generated in 2010 continuing into 2011. Net written premiums for the three months to 31 March 2011 are £2,101m, an increase of 8% over the first quarter of 2010 (8% at constant exchange), with premium growth driven by 4% rate and 5% from deals and acquisitions offset by a 1% reduction in volumes. International net written premiums of £1,101m up 7% (7% at constant exchange) were reported, with UK net written premiums of £760m (up 9%) and emerging markets net written premiums of £235m up 15%.
RSA said premium growth has been driven by strong performances in Canada and Ireland supported by prior year acquisitions.
In Canada, premiums of £291m ($456 million) were up by 26% (23% at constant exchange) driven by rate increases, strong retention and the acquisition of GCAN, which contributed 11 points (11 points at constant exchange) of the first quarter’s growth. In Personal lines, premiums were up by 13% (10% at constant exchange) to £195m with Johnson performing strongly, delivering growth of 15% (13% at constant exchange). Commercial lines were up by 66% (60% at constant exchange) to £96m driven by the acquisition of GCAN, for which regulatory approval was received in January, as well as strong performances in Small, Mid-Market and Risk Solutions.
The global insurance industry was hit by natural catastrophes in the first quarter, especially in Australia, New Zealand and Japan. RSA said it has limited exposure to these events through Global Risk Solutions and Marine written mainly through its UK Commercial lines business and expect the aggregate net claims to be around £25m.
In a statement, Andy Haste, Group CEO of RSA, said “The Group has made a strong start to the year with the excellent top line momentum we generated in 2010 continuing in the first quarter of 2011. Our strategy of driving rate and targeted organic growth supported by acquisitions continues to be successful. In International, last year’s acquisitions in Canada and Ireland both performed strongly, in the UK we continue to drive growth in Personal lines and in Emerging Markets, double digit growth was led by another excellent quarter in Latin America. We remain confident in our outlook for 2011 and as it stands today, continue to expect to deliver a combined operating ratio for the Group of better than 95%.”
