RSA Interim Management Statement
Quarter 1 2012: Continued good organic growth and strong financial position
- Net written premiums of £2.2bn up by 5% with all regions delivering good growth
- Rating action and increased volumes drive the top line forward
- IGD surplus remains strong at £1.3bn; coverage unchanged at 2.0 times
- Net asset value per share including IAS 19 of 107p compared with 104p at 31 December 2011
- Continue to expect to deliver good premium growth and a combined operating ratio (COR) of better than 95% in 2012
Overview
We have made a good start to the year. Net written premiums for the three months to 31 March 2012 are £2.2bn, an increase of 5% over the first quarter of 2011 (5% at constant exchange), with premium growth driven by 4% rate and a 1% increase in volumes. Total net written premiums including associates are up by 5% (6% at constant exchange) to £2.3bn.
- Scandinavia net written premiums of £667m up 1% (3% at constant exchange)
- Canada net written premiums of £303m up 4% (3% at constant exchange)
- UK and Western Europe net written premiums of £937m up 3% (3% at constant exchange)
- Emerging Markets net written premiums of £281m up 20% (21% at constant exchange)
- Associates net written premiums of £78m up 15% (20% at constant exchange)
Growth has been led by Emerging Markets, which has again been driven by an excellent performance in Latin America, and good performances in Personal lines in Canada and Scandinavia and Commercial lines in the UK. This has been partially offset by reductions in UK Personal Motor and Italy. We continue to benefit from our focus on Specialty and premiums grew by 6% at constant exchange across the Group.
For the full year, we remain confident of delivering good premium growth, a COR of better than 95% and investment income of around £500m.
Simon Lee, Group CEO of RSA, commented:
"We have made a good start to the year, building on the organic growth momentum generated in 2011 with premiums up by 5%. Growth has been led by our areas of key strategic focus including Emerging Markets, where Latin America was a particular highlight, global Specialty lines and Household and Pet in the UK. For the full year, we remain confident of delivering good premium growth and a combined operating ratio for the Group of better than 95%.
