RSA has revealed that its business operating profit for Q1 nearly doubled versus against the previous year, in what it called an “excellent” quarter for the group, as it also confirmed its takeover deals with Intact and Tryg will complete by the end of May.
The deals will see Intact take over RSA’s Canadian, UK and international business for £3bn, while Tryg takes over its Sweden and Norway business for £4.2bn.
In its latest announcement, the group said that group gross written premiums rose by 2% to £2.05bn, while it also welcomed a “significantly” improved combined ratio and lower investment income, and each of its three regions performed ahead of the prior year.
Group weather costs were 1.7% of net earned premiums, down from 3.7% the previous year, and the large loss ratio was 9.8%, up from 9.4% in Q1 2020. The attritional loss ratio improved overall, and in each region including and excluding covid impacts.
The group’s estimated Solvency II coverage ratio was 200% at 31 March 2021. Including allowances for dividends both in current and prior years, the estimated ratio was 174%3 (31 December 2020: 170%). Reserve margin was unchanged during the quarter at above 5%.
Stephen Hester, RSA Group Chief Executive, commented: “RSA’s run of record performance continued in Q1 as the group delivered a combined ratio of 86%, our best such quarterly result of the last decade.
“We also announced today that the bid from Intact and Tryg should complete at the end of May, having now received its required regulatory approvals. The RSA business we handover has never been in better shape. I would like to thank our customers for their enduring support and my colleagues for their continued professionalism and commitment.”