Insurer boss hails underwriting result, with combined ratio at 90%

RSA’s UK and international premium shrank 6% to £1.99bn this year, the insurer revealed in a third quarter statement.

The impact of Covid was clear, with the insurer stating that the shrinkage would have only been 2% if it were not for Covid. 

RSA has also launched the second phase of its cost reduction programme, with £14m of charges booked below the operating result in respect of this.

Canada and Scandinavia net premiums fell 1%, meaning the overall group has shed 3% net premiums to £4.6bn.

RSA chief executive Stephen Hester hailed the strong combined ratio, 90%. 

“RSA’s run of record underwriting results is continuing.

”The group recorded a Q3 discrete combined ratio of 90%2, despite providing fully for the UK BI Court ruling in September.

”While COVID-19 has held back our profit overall, RSA’s inherent strength and the improvements we have made are driving the business forward in a pleasing manner. The outlook for continued underwriting improvements remains positive.”

Covid impact

RSA also revised down its original estimate of the cost COVID-19 claims by £20m to £62m following an initial court ruling in September.

The insurer said that since the half year reporting, there has been no material increases in COVID-19 related claims reserves outside those relating to business interruption claims in the UK.

The share price was down 3.2% today.