RSA Insurance Group annual profits for 2010 fell 14%, to £474m, due to increased bad weather claims totalling £250m, half relating to the UK, and £30m costs for the Chilean earthquake.
Net written premiums for the group, which employs about 1,200 staff in Liverpool, rose 11% to £7.45bn.
The insurer’s combined operating ratio, which represents the amount of money spent on claims and costs for every £1 of premiums taken, of 96.4%, included 3.5 points of worse than normal weather losses.
However, the group increased its international spread last year with acquisitions in Canada, Ireland, Sweden, Denmark and Oman, and chief executive Andy Haste outlined more aggressive international expansion plans for 2011 and a target to double premiums in emerging markets to £2.2bn by 2015.
He said emerging markets and international growth will generate 70% of net written premiums in the next five years.
However, UK chief executive Adrian Brown said this would adversely affect UK operations. He said: “Expansion overseas does not mean contraction in the UK.
“The UK market is mature and you can only grow by taking business from other players. Emerging markets are really growing.”
He added: “Maybe people don’t realise just what an international group we are.
“Diversification of the group across the globe means we can ride out adverse conditions in other markets.”
He praised Liverpool’s contribution to the group’s performance.
General insurance division More Than’s household and motor insurance business achieved growth of 10% and 4% respectively.
Source : Liverpool Daily Post
