28th Sep 2018 09:08
LONDON (Alliance News) - Shares in RSA Insurance Group PLC fell Friday as the company reported its UK business suffered an underwriting loss for the third quarter of 2018.
RSA shares were 8.4% lower on Friday morning, at 581.00 pence, making it comfortably the worst performer in the FTSE 100 index.
UK premiums are lower, RSA said, as it takes pricing and re-underwriting action, but international business, such as in Scandinavia and Canada, is more positive, it said. The UK made an underwriting loss of around GBP70 million during the third quarter, recording a 110% combined ratio. A ratio over 100% represents underwriting losses.
The company blamed increased weather, large losses, and attritional claims for the disappointing UK performance, with its Marine portfolio the worst hit.
"RSA's international businesses performed well in the third quarter, making strong progress against our best-in-class ambitions," said Chief Executive Stephen Hester,
"However, our UK and 'London market' business reported an underwriting loss which is disappointing. Actions to improve in the UK are well underway and we are determined to restore satisfactory performance whilst continuing our progress internationally."
So far in the year-to-date, weather losses are higher across all regions but are worst in the UK and Canada. Large losses in the UK have improved in full year to date, but have deteriorated in Canada and Scandinavia.
Third-quarter group net written premiums are 4% higher year-on-year. In the year-to-date, they are 2% down on a headline basis but up 1% net of reinsurance changes.
At the end of September, RSA is guiding for a solvency II coverage ratio of around 172%, compared to 163% at the end of December.
Related Shares:
RSA.L