RSA’s UK and international premium shrank 6% to £1.99bn this year, as revealed by the insurer in its third-quarter statement. The insurer stated that the shrinkage would only be 2% if it were not for Covid.
RSA has also launched the second phase of its cost reduction program, with £14m of charges booked below the operating result. Canada and Scandinavia’s net premiums fell 1%, resulting in the overall group loss of 3% net premiums to £4.6bn.
Stephen Hester, RSA Group Chief Executive, commented on the situation, “RSA’s run of record underwriting results is continuing. The Group recorded a Q3 discrete combined ratio of 90%2, despite providing fully for the UK BI Court ruling in September.”
Hester added, “while COVID-19 has held back our profit overall, RSA’s inherent strength and the improvements we have made are driving the business forward in a pleasing manner. The outlook for continued underwriting improvements remains positive.”
In September, RSA revised down its original estimate of the cost COVID-19 claims by £20m to £62m following an initial court ruling in September.