UK commercial lines was one of R&SA'a star performers in its first quarter results announced today.
Speaking at a breakfast briefing at the Biba conference in Bournemouth, UK commercial lines director Peter Webster said that the first quarter combined ratio for UK commercial improved from 98.8% in 1Q 2002 to 94.4% this time around.
Personal lines performance was not quite so encouraging. While the combined ratio improved from 111.3% in 1Q 2002 to 106.7% this time around, R&SA group chief executive Andy Haste said that the UK personal lines result was unacceptable.
He added: "We must reduce the expense base of More Th>n."
Webster recognised that weather claims for the quarter have been low and contributed to the improvement, but that improved risk selection was a factor too.
Despite the improvements in combined ratios, Webster said: "One swallow does not make a summer. We need to sustain this performance over a number of quarters."
Webster also explained that regulatory capital surplus was £1.3bn. He said that meant R&SA had exceeded its minimum FSA capital requirement by £1.3bn and that its risk based capital position was now in equilibrium having been in deficit by over £700m before the disposal of Promina in Australia and Healthcare and Assistance.
R&SA corporate strategy director Brendan McManus added that motor premiums had risen by 4% in personal lines and 6% in commercial lines.
