LIVERPOOL insurance group RSA announced a robust nine month performance in a trading update today.

Group net written premiums for the period to September 30 of £5.5bn were 10% better than the corresponding year and the business, which employs about 1,200 in the city, said it is on course to deliver a combined operating ratio (COR) – the difference between claims paid out and premiums taken in – of 95% for the full year.

RSA said, as in the first six months, trading conditions remain challenging, including more bad weather in Canada and Scandinavia, although its estimated net loss for the earthquake in Chile in February remains unchanged at around £30m.

Net written premiums from its international business were £2.65bn, up 8%, or 3% at the same exchange rate as last year’s corresponding results.

The UK enjoyed a 10% increase to £2.17bn, while emerging markets showed a 19% increase, or 13% at constant exchange rates, to £683m, and in India, premiums of £84m were 33% better, or 24% on last year’s exchange rates.

RSA’s latest acquisitions included GCAN in Canada and 123 Money in Ireland and its Tesco Pet insurance in the UK, which is expected to generate premiums of £100m in 2011, is now operational.

Chief executive Andy Haste said: “In what is a challenging year for the industry we have built good top line momentum and have again driven the business forward, delivering strong premium growth in the UK, international and emerging markets.

“We continue to supplement organic growth with targeted acquisitions and have signed a further 10 deals in 2010.

“We remain excited about the group’s prospects and confident of delivering sustainable profitable performance.”

He said the UK business had delivered another “excellent top line performance”.

Liverpool stockbroker Panmure Gordon described today’s update as “another solid performance from RSA”, saying forecasts are likely to edge higher following the revised investment return guidance.

It maintained its ‘buy’ recommendation to investors.