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Daily Insurance Industry News
Thursday 15th of November 2018
February 28, 2008

Royal & Sun Alliance rebranding to RSA, and report 4% rise in profits

by David Masters

Story link: Royal & Sun Alliance rebranding to RSA, and report 4% rise in profits

Royal & Sun Alliance rebranding to RSA, and report 4% rise in profits

Royal & Sun Alliance (RSA) have reported a 4% rise in operating profit for 2007, up from £780 million in 2006 to £814 million. This is in spite of losses from the UK floods totalling £120 million.

The company’s net written premiums increased by 6% from £5.48 billion to £5.84 billion. This reflects the strong growth in international emerging markets, as well as RSA’s targeted UK growth.

UK net written premiums saw a 3% rise to £2.69 billion. This rise was driven by both organic growth and the Affinity deals signed in 2006.

However, RSA’s commercial lines premium in the UK fell by 9% to £1.66 billion. This was partly due to rising rates in property and motor.

The company’s combined ratio was also up, rising from 93.3% to 94.9%. However, this is still under the company’s target of 96%.

When reporting the results, Royal & Sun Alliance’s chief executive Andy Haste announced that the group will now be rebranded as RSA. He added that he is confident that the company will continue to deliver a sustainable profit performance.

Haste said of the results: “In challenging market conditions, we have again delivered a strong performance. In 2007, we delivered profitable growth in each of our regions and achieved a strong bottom line result.

“The results have been delivered against the backdrop of a competitive rating environment, adverse large losses and weather, including the UK floods, and volatile investment markets.

“The results clearly demonstrate the benefit of our strong and diversified portfolio and our tight operational and financial management.

“With our strong portfolio and the actions we are taking, we are confident that we will continue to deliver the profitable performance that we have seen over the last few years.

“As it stands Wednesday, we expect to deliver a 2008 combined operating ratio of around 95%.

“During 2007, we resolved our last remaining legacy issue and we are now fully focused on continuing to deliver our objective of sustainable profitable performance.

“As we move the business forward, it is now the appropriate time to simplify and refresh our corporate brand and name.”

 

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