30th Jul 2020 11:12
(Alliance News) - RSA Insurance Group PLC on Thursday said profit fell in the first half of the year as a result of the Covid-19 pandemic's damage to markets.
The London-headquartered general insurer posted a GBP211 million pretax profit for the six months ended June 30, down 7.0% from GBP227 million the year before. RSA attributed this to "Covid-19 market related impacts"
Net written premiums were down 3.4% at GBP3.14 billion from GBP3.25 billion.
The group's combined ratio, a measure of underwriting profitability, fell to 92.2% from 94.3%. This excludes "exit portfolios in UK & International which was substantially ran off in 2019, with residual premium still to earn out in 2020".
No interim dividend was declared, following the suspension of payment of its 2019 final dividend in April, though RSA said Thursday it "expects to resume dividends as soon as judged prudent". Absent any unforeseen events, this should take place along with its annual results for 2020. RSA also planning to catch up on its missed dividend payments over time.
Chief Executive Stephen Hester said: "Covid-19 has dominated recent months. Uncertain times put a special premium on sustaining customer service whilst operating safely and securely for our people and other stakeholders. This has been our focus and will remain so over the rest of the year. The recovery path from the pandemic itself is not yet certain, as well as its human and economic consequences. Nevertheless, we see good prospects for RSA remaining resilient and emerging strongly from this period."
Shares in RSA were down 2.9% at 425.60 pence in London on Thursday morning.
By Anna Farley; [email protected]
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