Some premium ups and downs for insurer

Some premium ups and downs for insurer | Insurance Business

Some premium ups and downs for insurer
This updated article clarifies an earlier one that failed to take into consideration constant exchange rate reporting around Canadian-specific financials.

There were a couple of premium drops and one bump up for one insurer after looking at the numbers for the past nine months.

RSA Insurance Group plc reported a 2 per cent drop in net written premiums in Canada, with a 7 per cent increase in household premiums and a 9 per cent drop in commercial liability premiums in Canada - taking into account currency fluctuations - according to its interim management statement ending September 30 for the past nine months.

It should be noted that the premium drops and bump up are variances on a constant FX basis, states RSA.

Group-wide, London-based insurer reported net written premiums of almost £5.7 billion in 2014, down 16 per cent from just over £6.7 billion during the same period last year.

“Household premiums included double digit rate increases as the market continues to respond to the weather events of last year, volumes remained flat,” RSA stated of the Canadian results. “In Motor, premium reductions reflected the exit of certain broker relationships and lower new business and rate in Ontario.”

According to RSA Canada, the numbers from last year in household and auto were:
- household premiums were $589m; up 7% from $550m; and
- auto premiums were $847m; down 6% from $901m in 2013

RSA had net written premiums of $641 million:
- $157m in liability;
- $130m in commercial auto;
- $282m in property;
- $71m in marine and other products.

Weather events played a major factor in the costs to the insurer, with the August hailstorm in Alberta costing RSA almost $20 million.