Insurer’s contract with OIM marks its move towards household and commercial
RSA’s £75m deal with Gallagher UK underwriting agency OIM underscores the company’s shift in focus away from personal lines motor and onto household and commercial.
The deal comprises two five-year household deals and a commercial combined deal. RSA said that the deal complements one of its core strategies, which is to build long-term relationships with key partners, with a focus on the home and commercial insurance markets, where RSA has significant expertise.
The news of the OIM deal came as RSA announced a 17% drop in UK personal motor net written premium (NWP) in the first quarter of 2012, which prompted total personal lines premium to fall 2% to £330m.
The slump in personal motor was caused by RSA continuing to push through price increases, and a cut in personal motor capacity to brokers. An RSA spokesman said the company had decided to cut the motor capacity to allow the company to focus on personal lines pet and household, where it sees more growth opportunities.
The spokesman added that the company remains committed to its broker channel and pointed out that, overall, personal lines broker business grew in the first quarter.
RSA’s UK net written premium rose 4% to £725m in the first quarter of 2012 (Q1 2011: £694m). This was mainly driven by commercial premium growth of 11% to £395m.