RSA Announces Strong Year-End Results

 

February 26, 2009– Leading home, car and business insurer RSA today reported strong year end results for 2008 with growth of 15% and a combined operating ratio of 92.9%.

 

Group

 

It’s been another strong year for the Group. Despite challenging conditions, we’ve again delivered a strong and profitable performance. Net written premiums were up by 11% to £6.5bn. The combined operating ratio was 94.5% and the underwriting result was up by 38% to £384m.

 

Canada

 

In Canada, net written premiums were up 15% on prior year to $1.7bn driven by organic growth and the acquisition of CNS. We achieved an underwriting profit of $112m, $5m ahead of last year and a COR of 92.9%, despite increased large losses and the severe winter weather.  

 

In Commercial Lines, premiums were up 9% to $425m with a COR of 92.2% and an underwriting profit of $35m. This is a good result and demonstrates our underwriting discipline and focus on our strategic priorities.

 

In Personal Lines, including Johnson Inc., premiums were up 18% to $1.3bn with a COR of 93.2% and an underwriting profit of $77m. 

 

The integration of CNS, which was acquired at the end of 2007, remains on track and we are pleased with the progress CNS is making in British Columbia At the end of last year, we introduced new products for both personal and commercial lines.

 

“RSA has delivered another strong set of year-end results. Despite a challenging market and some of the worst weather conditions Canada has seen in decades, we achieved growth of 15% and have continued to outperform the market,” said Rowan Saunders, President & CEO, RSA Canada. “Our position as a segmented and specialist insurer has provided us with the confidence to appropriately select and grow in our chosen segments. We expect market conditions to remain very difficult; however, we believe we have the right strategy in place to continue to deliver sustainable profitable growth.”

 

 

About RSA

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 £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:

 

Exchange rates

 

£/local currency	12 Months 2008			12 Months 2007
	Average	Closing		Average	Closing
Canadian Dollar	1.96	1.77		2.14	1.96

 

 

* Figures are prepared in accordance with IFRS.

 

For more information contact:

Sarah Kennedy

External Communications Consultant

RSA

Sarah.Kennedy@rsagroup.ca

416-366-7600 ext. 2987