6th Nov 2014 08:23
LONDON (Alliance News) - RSA Insurance Group PLC Thursday reported a fall in premiums as a result of weak insurance market conditions and the group's restructuring plan being led by Chief Executive Stephen Hester.
In a statement, RSA said net written premiums fell to GBP5.68 billion in the first nine months of the year, compared with GBP6.74 billion in the corresponding period last year.
Led by the former Royal Bank of Scotland Group chief executive, RSA has been selling off businesses in order to strengthen its capital position following an accounting scandal in its Ireland operations last year and the impact of higher claims.
On the way towards building an international general insurer focused on Northern developed markets, plus a business in Latin America, Hester has agreed deals to sell operations in Singapore, Hong Kong, China and Italy, and has completed sales of Canadian brokerage Noraxis, RSA's business in Poland and Lithuania and Estonia.
However, his work isn't done and Hester is planning further disposals over the next 12 months.
"Overall, work continues towards meeting the medium-term performance targets we have set. Soft insurance and investment market conditions and a conservative outlook for prior year profit emergence seem likely to put even more emphasis on improving underwriting and cost re-engineering, which will take time to have full effect," Hester said in a statement.
In a conference call with journalists, Hester said not to expect further disposals between now and the end of 2014.
He also reiterated that he hopes to restart dividends next year.
"We will start at a modest level and build," Hester said.
RSA shares were down 0.7% at 480.50 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
RSA.L