RSA, the UK non-life insurer, announced a 25% reduction of its net profits for the first half of 2009.
Strong Group performance in challenging conditions
- Net written premiums of £3.5bn up 4%
- Combined operating ratio (COR) of 93.5%
- Operating result of £392m
- Profit before tax of £301m
- IGD surplus of £1.7bn, representing coverage of 2.4x
- Interim dividend up 7% to 2.92p
Delivery against strategic objectives
- Driving the Group forward through organic initiatives and acquisitions
- Maintaining tight operational and financial management
- Continuing to take the right action on rate and expenses
- Successfully issued £500m of lower tier two subordinated debt
- Strong capital and financial position
- Further de-risked the UK defined benefit pension schemes by insuring £1.9bn of liabilities
Andy Haste, Group CEO of RSA, commented:
“In what remain challenging trading and economic conditions, we have again delivered a robust performance. We’ve targeted profitable organic growth and completed acquisitions in Central and Eastern Europe, Canada and Ireland. We’ve maintained our tight operational and financial management and continued to take the right action on rate and expenses.
We successfully completed our £500m subordinated debt issue and remain in a strong capital and financial position. These results continue to demonstrate the positive impact of our diversified portfolio and our high quality, low risk investment strategy.
With these actions and the strength of the portfolio, we are well positioned to take advantage of market opportunities and remain confident in the Group’s ability to continue delivering sustainable profitable performance. As it stands today, we expect to achieve a combined operating ratio for 2009 of around 95%. The outlook for the Group is positive and this is reflected in the 7% increase in the interim dividend to 2.92p (H1 2008: 2.73p).”
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