The UK’s RSA has released its “Interim Statement” for the first quarter of 2011, confirming the Group’s steady growth.
Highlights of the report were listed as follows:
• Net written premiums of £2.1 billion [$3.4 billion] up 8 percent
• All regions delivering good growth, with organic growth supported by prior year acquisitions
• IGD surplus of £1.4 billion [$2.27 billion]; coverage remains strong at 2.1 times
• Total net asset value per share of 105 pence [$1.70] compared with 104 pence [$1.686] at 31 December 20101
• Remain confident of delivering full year premium growth of around 10 percent in International, targeted growth in the UK and double digit growth in Emerging Markets
• Continue to expect to deliver a COR of better than 95 percent in 2011
• International net written premiums of £1.101 billion [$1.638 billion] up 7 percent (7 percent at constant exchange)
• UK net written premiums of £760 million [$1.232 billion] up 9 percent
• Emerging Markets net written premiums of £235 million ($381 million] up 15 percent (15 percent at constant exchange)
• Indian associate net written premiums of £33 million [$53.5 million] up 27 percent (22 percent at constant exchange)
RSA said: “Premium growth has been driven by strong performances in Canada and Ireland supported by prior year acquisitions, UK Personal lines where we have delivered good growth in Pet and continued to take strong rating action, and double digit growth in Emerging Markets led by another excellent performance in Latin America. For the full year, we continue to expect to deliver around 10 percent premium growth in International, targeted growth in the UK and double digit growth in Emerging Markets.”
The statement also commented on the first quarter’s severe natural catastrophes, indicating that the Group has “limited exposure to these events through Global Risk Solutions and Marine written mainly through our UK Commercial lines business and expect the aggregate net claims to be around £25 million [$40.53 million].
“As it stands today and assuming a continuation of the current more normal levels of weather losses compared with 2010, we continue to expect to deliver a COR of better than 95 percent in 2011 and, as previously reported, we also expect investment income for 2011 to be around £550 million [$891 million] and total gains to be around £50 million [$81 million].”
Group CEO Andy Haste commented: “The Group has made a strong start to the year with the excellent top line momentum we generated in 2010 continuing in the first quarter of 2011. Our strategy of driving rate and targeted organic growth supported by acquisitions continues to be successful. In International, last year’s acquisitions in Canada and Ireland both performed strongly, in the UK we continue to drive growth in Personal lines and in Emerging Markets, double digit growth was led by another excellent quarter in Latin America. We remain confident in our outlook for 2011 and as it stands today, continue to expect to deliver a combined operating ratio for the Group of better than 95 percent.”