INSURANCE group RSA has seen good growth across all regions, it said in a trading update today.
The firm, which employs about 1,200 staff at its Capital Building offices in Old Hall Street and its More Th>n operation in Mercury Court, revealed that net written premiums of £6.1bn were an 11% improvement during the third quarter.
And it said it expects to deliver a combined operating ratio (COR) – the money spent on claims and costs for every £1 of premiums taken – of better than 95% for 2011.
During the nine month so far RSA said international net written premiums of £2.99bn were 13% up, its UK figure of £2.32bn was 7% better, an emerging markets level of £800m showed a 17% improvement, while its Indian associate net written premium of £106m was 26% ahead.
It said growth has been driven by strong performances in Canada and Ireland, supported by acquisitions before the current financial year.
In the UK its personal insurance lines, particularly pet and household cover, performed well and it said for the full year it is confident of delivering targeted growth.
International markets should deliver 10% premium growth, while growth in emerging markets should hit double digits.
During the past quarter RSA said it has seen a continuation of the high frequency of ‘catastrophe events’ suffered in the first half, such as the Japanese earthquake and tsunami.
Adverse weather affecting Denmark and the floods in Thailand are expected to contribute to a £60m impact on the group.
But despite these events it said it still benefits from a strong and diversified portfolio and a high quality, low risk, investment strategy.
Simon Lee, who has replaced Andy Haste as group chief executive, said today: These are strong results in challenging market conditions.
“We have continued to build momentum and drive growth across the business while maintaining a strong financial position.
“Premiums have grown by 11% reflecting targeted organic initiatives, rate and the benefits of our 2010 deals.”
He added: “I feel privileged to be leading such a great business and I’m confident in our ability to continue to meet our targets and deliver sustainable profitable performance.
“While the external environment remains tough, as things currently stand, we continue to expect to deliver a combined (COR) for the group of better than 95% in 2011.”
