10th May 2018 10:22
LONDON (Alliance News) - RSA Insurance Group PLC said Thursday is first-quarter pretax profit was higher than in the year-ago period, although on an underlying basis it was lower, as increased winter weather costs were not fully offset by other business improvements.
Shares in RSA were trading 2.0% higher at 647.80 pence Thursday morning.
RSA didn't provide the actual figure for quarterly pretax profit.
The company said weather costs for the three months to March-end were 5.1% of net earned premiums, 3.1 points higher than a year ago and 1.9 points higher than the five-year average of 3.2%, with all regions impacted.
First quarter gross written premiums totalled GBP2.09 billion, up 1% at constant exchange rates and in line with the year ago period.
Net written premiums were up 2% at constant exchange rates at GBP1.52 billion. At an adjusted level, reinsurance costs for the triennial GVC renewal, reduction in retention levels for certain insurance programmes, and the inflation rate in reinsurance areas such as UK Motor damped net written premiums by GBP197 million.
RSA's large-loss ratio - the ratio of losses to gains such as the ratio of paid insurance claims, including adjustment expenses, to premiums earned - improved to 9.7%, trending closer to the five-year average of 9.0%, the company said.
"We are happy with RSA's progress at this early stage of the year. The underlying business is tracking consistent with our ambitions overall, whilst winter weather volatility is a normal part of our business. Headline profits are also strongly up, reflecting the absence (as planned) of restructuring costs," said Chief Executive Stephen Hester.
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