RSA declares Q1 operating results as takeover gets green light

Completion date is announced

RSA declares Q1 operating results as takeover gets green light

Insurance News

By Terry Gangcuangco

RSA Insurance Group Plc has announced what the group described as “excellent” operating results for the first quarter of 2021.

In a trading update, which the insurer clarified does not constitute an interim report, RSA said its gross written premium grew 2% from the same period in 2020 to £2.05 billion (around SG$3.79 billion) this time around. Group business operating profit, meanwhile, nearly doubled.

Without providing the numbers, the insurance group highlighted that each of RSA’s three regions – Scandinavia, Canada, and UK & international – performed ahead of the previous year. The large loss ratio stood at 9.8%, while the attritional loss ratio improved overall.

Additionally, the company’s estimated Solvency II coverage ratio was 200% as of March 31, with tangible shareholders’ equity at £3.25 billion.

“RSA’s run of record performance continued in Q1 as the group delivered a combined ratio of 86%, our best such quarterly result of the last decade,” noted group chief executive Stephen Hester.

“We also announced that the bid from Intact and Tryg should complete at the end of May, having now received its required regulatory approvals. The RSA business we hand over has never been in better shape.”

Re-registration of the UK-headquartered insurer as a private limited company is set to take place by May 28, and the cancellation of listing of RSA shares is scheduled on June 02.

Intact Financial Corporation will be retaining RSA’s Canadian, UK, and international units, while co-buyer Tryg A/S is getting the Swedish and Norwegian businesses. The operations in Denmark will be 50/50 owned by both camps.

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