7th Nov 2019 08:49
(Alliance News) - FTSE 100-listed RSA Insurance Group PLC on Thursday reported flat premiums in the first nine months of 2019 despite "challenging" market conditions.
The London-headquartered company said insurance market conditions were largely unchanged in the third quarter, but financial markets continue to present challenges, particularly from lower bond yields.
RSA said, in the year-to-date, it was focusing on growing its business "where underwriting conditions permit", and to re-price and re-underwrite in those business lines which experienced difficulties in 2018.
The company's net written premiums in the year-to-date of GBP4.87 billion were flat year-on-year and broadly in line with expectations.
By region, in Scandinavia, premiums grew 2%, but in the UK & International, premiums fell by 3%. In Canada, premiums increased 4%, driven by pricing increases and volume growth in direct Personal Lines, while RSA's broker intermediated businesses saw volume contraction.
Operating profit for the first nine months of 2019 was up, the insurance company said, both including and excluding exit portfolios, with an improved combined ratio but slightly lower investment income.
Tangible net asset value per share was 306 pence at the end of September, up 9.7% from 279p reported at the end of 2018.
"RSA's results to end September are strong, and consistent with our plans for the period. Current year underwriting results have sharply improved, with all our regional businesses contributing," said Chief Executive Stephen Hester.
Looking ahead, Hester added: "There is lots more to do - not least to finish 2019 well, with momentum into next year."
The company said a UK cost reduction programme has commenced, which RSA said will be described "more fully" with year-end results. In the third quarter, RSA booked GBP8 million restructuring charges, it said.
RSA shares were trading 3.1% higher in London on Thursday morning at 548.80 pence each.
By Evelina Grecenko; [email protected]
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