Final hours! Save up to 50% OFF InvestingProCLAIM SALE

Milder British, Irish winters help RSA Q1 profit

Published 2019-05-09, 04:33 a/m
© Reuters.  Milder British, Irish winters help RSA Q1 profit
UK100
-
HSX
-
BEZG
-

* Net written premiums up 3 percent to 1.57 bln stg

* Operating profit up on a constant currency basis

* London commercial insurance rates up 4-20 percent

* Shares up 1.4 percent

By Carolyn Cohn

LONDON, May 9 (Reuters) - Milder weather in Britain and Ireland helped RSA's operating profit in the first quarter, the insurer said on Thursday, driving its shares higher.

The home, motor and commercial insurer in a trading statement said operating profit rose on a constant currency basis as it had lower weather-related costs, an improvement in expense ratios, and had cut less profitable business in commercial insurance.

"In the UK and Ireland, we had a very benign winter and weather costs were much lower," Chief Executive Stephen Hester said on a media call but added:

"In Canada, we and the whole industry had a very difficult winter."

RSA, best known in Britain for its More Than brand, also has major businesses in Canada, Ireland and Scandinavia.

Net written premiums rose 3 percent to 1.57 billion pounds ($2.04 billion) versus a forecast of 1.6 billion pounds by KBW analysts.

RSA warned last year about poor performance in its London-based international commercial insurance business and pulled out of several lines, including international freight and construction.

Premium income fell 5 percent in the UK and Ireland division as a result of the changes, RSA said.

Commercial insurance prices are rising following two years of heavy losses from hurricanes, typhoons and wildfires.

Rates were up between four and 20 percent in commercial business written out of London, Hester said.

Lloyd's of London insurers Beazley BEZG.L and Hiscox HSX.L also reported first-quarter rate rises this week. shares were up 1.4 percent to 542 pence at 0824 GMT, making it the second biggest percentage gainer in the FTSE 100 index .FTSE .

($1 = 0.7681 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.