Flooding to cost insurer £120m
Royal & SunAlliance reported UK underwriting profits of £51m for the first six months of 2007, with net written premiums up 7% to £1.4bn.
Despite losses from the June floods of £55m, the insurer achieved a combined ratio in the half year of 96.1% for UK business. This compared to 91.5% in the same period in 2006.
Underwriting profit fell 46% from £95m in the first half of 2006.
The insurer said it had delivered a “strong performance in a competitive market”.
Overall, the group reported net written premiums up 8% to £3bn and an operating profit of £403m in the half. The combined ratio was 93.3%.
Andy Haste, group chief executive of Royal & SunAlliance, said:
“In challenging market conditions, we’ve had a good first half – we’re driving profitable growth in each of our regions and we’ve achieved a strong bottom line result.
“The results have been delivered against the backdrop of the UK floods in June, as well as adverse weather and increased large losses across the Group, and clearly demonstrate the benefit of management actions and the strong and diversified portfolio.
He said the outlook for the group remained positive. “After allowing for the impact of the UK floods in June and July of £120m, as it stands today, we expect to deliver a combined operating ratio for the full year of around 96%.
“With our strong portfolio and the actions we are taking, we are confident that in 2008 and beyond, we will continue to deliver the profitable performance that we have seen over the last few years.”Royal & SunAlliance reported UK underwriting profits of £51m for the first six months of 2007, with net written premiums up 7% to £1.4bn.