25th Jun 2012 10:50
RSA announces that it will close DIRECT Pojiš?ovna, its direct Motor insurer in the Czech Republic, to new business and will place the existing portfolio into run-off with immediate effect.
Simon Lee, Group CEO, commented, "Our strategy is to achieve scale in our chosen markets to deliver a sustainable underwriting profit. We felt unable to do this in the Czech Republic within a reasonable timeframe and, as a result, have taken the decision to exit the market. This will not impact existing customers during the remainder of their policy term and we remain committed to honouring the liabilities of the Czech operation until the run-off of the business is complete."
- ENDS -
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Notes to editors:
1. DIRECT Pojiš?ovna generated net written premiums of around GBP 12m in 2011
2. This run-off action will result in a restructuring charge of around GBP 10m which will be included in the Group's 2012 half year results
About RSA
With a 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. RSA has major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East, Latin America and Central and Eastern Europe and has the capability to write business in around 140 countries. Focusing on general insurance, RSA has around 23,000 employees and, in 2011, its net written premiums were £8.1 billion.
Important Disclaimer
This press release may contain 'forward-looking statements' with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition, performance results, strategic initiatives and objectives. Generally, words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "continue" or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group's control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group's forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.
Copyright Business Wire 2012
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