Personal lines rescues RSA’s underwriting result

RSA’s UK business made an underwriting profit of £8m in the first half of 2011, as personal lines profits offset commercial lines losses.

This was an improvement over the £2m profit made in the first half of last year.

The personal lines underwriting result almost doubled to £27m, which RSA attributed to the household book. However, the commercial business made a loss of £19m, which RSA said was caused by challenging conditions in commercial motor and the impact of catastrophe events in the first quarter.

RSA’s first half combined ratio for UK business came in at 98.5% (H1 2010: 98.9%).

UK net written premiums increased 7.4% to £1.6bn from £1.5bn. Personal lines premiums written increased 14% to £678m, while commercial lines premiums written increased 3% to £892m.

RSA increased personal motor rates by 24% and household rates by 6%. In the commercial book, the company achieved a 4% rate hike in liability, 6% in property and 13% in motor.

RSA UK H1 2011 results in £m (compared with H1 2010)

• Net written premiums: 1,570 (1,884)
• Underwriting result: 8 (2)
• Investment result: 137 (141)
• Insurance result: 145 (143)
• Combined ratio: 98.5% (98.9%)