8th May 2008 07:00
RSA Interim Management Statement Quarter 1 2008: Continued strong performance -- Group net written premiums of £1.7bn up 15% (8% at constant exchange rates) -- International net written premiums of £893m up 24% -- UK net written premiums of £661m up 3% -- Emerging Markets net written premiums of £163m up 23% -- Performance reflects benefits of strong and diverse portfolio Andy Haste, Group CEO of RSA, commented: "It has been a good start to 2008. Our three month premiums clearly demonstratethe benefit of our strong and diversified portfolio. Market conditions remainchallenging, however, we continue to exercise tight operational and financialmanagement, including taking the right action on rate and expenses, to deliversustainable profitable performance. We remain confident of achieving a strongresult in 2008 and beyond." Business Overview Net written premiums for the three months to 31 March 2008 were £1,721m, anincrease of 15% (8% on constant exchange) over the same period in 2007. International has continued to deliver strong growth, with premiums up 24% to£893m, reflecting the benefits of organic initiatives, recent bolt onacquisitions and favourable foreign exchange movements. In Scandinavia, premiumswere £589m up 19% (6% on constant exchange) with continued good growth in bothDenmark and Sweden. In Canada, premiums of £188m were up 45% (27% on constantexchange), driven by organic initiatives and the benefit of the acquisition ofCNS in December 2007. In Other Europe, premiums were up 21%, an increase of 7%at constant exchange rates. The UK has again delivered a good performance in a competitive market andpremiums increased by 3% to £661m. Personal lines increased by 8% to £265mdriven primarily by growth in Affinity partnerships and MORE TH>N. InCommercial, premiums of £396m were in line with last year, reflecting ourcommitment to maintaining underwriting discipline and the withdrawal of capacityfrom unprofitable areas of the market. We continue to take the right action onrate, and have once again achieved mid single digit increases in Personal Motorand Household. In Commercial, we have increased rate on Motor and Property by 8%and 3% respectively, while liability rates were flat, compared with a decreaseof 4% at the same time last year. Retention remains strong across the businessat over 80%. Emerging Markets continues to deliver double digit growth, with premiums up 23%(11% on constant exchange) to £163m, with strong growth in the Baltics, LatinAmerica and Asia and the Middle East. Our joint venture in Eastern Europe alsocontinues to perform well and in April of this year we opened for business inRussia. A breakdown of net written premiums and rating actions for the first quarter isincluded in the notes to editors. The Group's financial position remains strong and in the year to date hasbenefited from retained profits as well as favourable currency and investmentmarket movements. As reported in the 2007 full year results, RSA expects todeliver a combined operating ratio for 2008 of around 95%. Investor Presentation - Scandinavia RSA will be meeting with investors and analysts this afternoon to give apresentation on our Scandinavian business. The presentation will be hosted bySimon Lee, CEO of International and will focus on the strategy, financialperformance and growth initiatives of the business. In conjunction with this presentation, RSA is today announcing that, havingachieved its original £25m savings target one year ahead of schedule, it isdoubling the cost savings target for the Scandinavian business from £25m to£50m, to be delivered by mid 2010. For further information: \* TAnalysts Press-------------------------------------------------------------------Shona Cotterill Thomas Coops / Sarah Hilyer-------------------------------------------------------------------Tel: +44 (0) 20 7111 7212 Tel: +44 (0) 20 7111 7047/7327-------------------------------------------------------------------Wendy Hardy Simon Moyse (Finsbury)-------------------------------------------------------------------Tel: +44 (0) 20 7111 7140 Tel: +44 (0) 20 7251 3801-------------------------------------------------------------------\* T Notes to editors: 1. Set out below are the three month net written premiums for each of theregions: \* T Increase at Net written premiums Increase as constant Q1 2008 Q1 2007 reported exchange £m £m % % Scandinavia 589 497 19 6Canada 188 130 45 27Other Europe 116 96 21 7 ---------------------------------------------Total International 893 723 24 10 UK Personal 265 245 8 8UK Commercial 396 397 - - ---------------------------------------------Total UK 661 642 3 3 Emerging Markets(1) 163 132 23 11 Group Re 4 5 - - ----------------------------------------------------------------------Total Group 1,721 1,502 15 8----------------------------------------------------------------------\* T (1)Note: Emerging Markets Q1 2007 net written premiums include £5m in respect ofthe Venezuelan business, which was sold in December 2007. Excluding Venezuela,Emerging Markets premium growth was 28% on a reported basis, and 18% on constantexchange. 2. Rate movements achieved for risks renewing in March 2008 versus comparablerisks renewing in March 2007 were as follows: \* T Personal Commercial Motor Household Motor Liability Property % % % % % UK 5 4 8 - 3Scandinavia - 3 2 6 2Canada 1 5 (4) (2) (2)\* T 3. Foreign exchange rates used to convert Q1 2008 and 2007 net written premiumsto sterling are as follows: \* T Q1 2008 Q1 2007 Euro 1.32 1.49Canadian Dollar 1.99 2.29Danish Kroner 9.83 11.12\* T 4. This trading update constitutes RSA's Interim Management Statement for theperiod from 31 December 2007 to 7 May 2008. Net written premium growth for theyear to date is in line with that seen in the first three months. 5. A brief conference call on the Interim Management Statement will be held at8.30am today for analysts and investors. To participate in the conference call,UK participants should dial 0800 358 1448 or if dialling from overseas, + 44 (0)20 8609 1270 quoting 'RSA'. A replay of the conference call will be availableuntil 5.00pm BST on Friday 9 May. The dial in number for the replay is 0800 3582189 or +44 (0) 20 8609 0289, pin: 212499#. 6. A live audio webcast of the Scandinavian Investor presentation including thequestion and answer session, will be broadcast via the website(www.rsagroup.com) at 3.30pm today. This will be available via a listen onlyconference call by dialling UK Freephone 0800 358 1448 or International dial in+ 44 (0) 20 8609 1270 quoting 'RSA'. An indexed version of the audiocast will beavailable on the website on Friday 9 May. Copies of the slides to be presentedat the analyst meeting will be available on the website from 3.15pm today. About RSA With an almost 300 year heritage, RSA is one of the world's leadingmultinational quoted insurance groups. It has the capability to write businessin over 130 countries and with major operations in the UK, Scandinavia, Canada,Ireland, Asia and the Middle East and Latin America. Focusing on generalinsurance, it has around 22,000 employees and, in 2007, its net written premiumswere £5.8bn. The full name of RSA is currently Royal & Sun Alliance Insurance Group plc. Aresolution will be proposed at the Company's Annual General Meeting on 19 May tochange the name to RSA Insurance Group plc. Important Disclaimer This press release may contain "forward-looking statements" (as defined in theUS Private Securities Litigation Reform Act of 1995) with respect to certain ofthe Company's plans and its current goals and expectations relating to itsfuture financial condition, performance and results. By their nature, allforward-looking statements involve risk and uncertainty because they relate tofuture events and circumstances which are beyond the Company's control,including amongst other things, UK domestic and global economic businessconditions, market-related risks such as fluctuations in interest rates andexchange rates, the policies and actions of regulatory authorities, the impactof competition, inflation, deflation, the timing impact and other uncertaintiesof future acquisitions or combinations within relevant industries, as well asthe impact of tax and other legislation and other regulations in thejurisdictions in which the Company and its affiliates operate. As a result, theCompany's actual future financial condition, performance and results may differmaterially from the plans, goals and expectations set forth in the Company'sforward-looking statements. The Company undertakes no obligation to update anyforward-looking statements, save in respect of any requirement under applicablelaw or regulation. Copyright Business Wire 2008Related Shares:
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