RSA Canada reports strong growth at half year
Alberta floods impact profitability despite 15% growth in net written premiums
TORONTO, Aug. 1, 2013 /CNW/ - Leading home, car and business insurer RSA Canada reported another strong financial result, with 15% growth in net written premiums to $1,360m, compared to $1,181m in the first half of 2012.
"In the first half of the year we've continued to outperform the industry with strong organic growth across both personal and commercial lines, in addition to benefits resulting from our acquisition of L'Union Canadienne (UC) in Q4 2012," says Rowan Saunders, President & CEO of RSA Canada.
Commercial lines premiums were up 14% to $468m with all lines of business contributing. Excluding the acquisition of UC, the Commercial portfolio grew 5% with particularly strong results within Global Specialty Lines.
Personal lines premiums, including Johnson Inc., were up 16% to $892m, driven by the benefits of the acquisition of UC. Growth was 5% excluding UC, with a strong contribution from the Broker business, particularly in British Columbia, and improved retention across the book.
The underwriting result of $23m was inevitably negatively impacted by severe weather, namely late-June's flooding in Southern Alberta, which is expected to be one of the largest natural catastrophes in Canadian history. Gross claims in respect of this event are above reinsurance retentions, leading to a maximum net loss of $75m. As a result, the COR was 98.7%. Excluding the impact of the Alberta floods, the COR was 93.3%.
"The first half of 2013 has seen unprecedented severe weather, and the heavy GTA rainfall of July 8(th) has the potential to result in another significant catastrophic event for the industry," says Saunders. "I am extremely proud of how RSA Canada has responded to these events. Our people continue to provide immediate tangible and emotional support to those affected.
"A benefit of being part of a large international insurer is that we've been able to leverage resources and experience from other Group countries to ensure we are doing everything we can to get our customers back to normal as quickly as possible," continues Saunders. "The fact we are able to provide exceptional service to our customers during two significant and sequential weather events, while maintaining ongoing activities and delivering an excellent underlying financial result, demonstrates the calibre of our people and the strength of our business."
Notes to editors To see RSA Group's release and a video, click here.
All figures shown are presented in UK IFRS basis.
About RSA With a 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. RSA has major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East, Latin America and Central and Eastern Europe and has the capability to write business in around 140 countries. Focusing on general insurance, RSA has around 23,000 employees and, in 2012, its net written premiums were £8.4 billion.
About RSA Canada RSA Canada includes Roins Financial Services Limited, Royal & Sun Alliance Insurance Company of Canada, Quebec Assurance Company, Johnson Inc., Western Assurance Company, Ascentus Insurance Ltd., Canadian Northern Shield Insurance Company, RSA Travel Insurance Inc./Assurance Voyage RSA inc., L'Union Canadienne, Compagnie d'assurances, and is part of the RSA group of companies headed by RSA Insurance Group plc. RSA Canada employs approximately 4,200 people and is represented by a large network of brokers across the country. In 2012, the Canadian Group wrote $2.8bn in direct premiums with assets exceeding $7.6 billion. RSA is a trade name of Royal & Sun Alliance Insurance Company of Canada. "RSA" and the RSA logo are trademarks used under license from RSA Insurance Group plc.
Important Disclaimer This press release may contain 'forward-looking statements' with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition, performance results, strategic initiatives and objectives. Generally, words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "continue" or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group's control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group's forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.
Christine Siemiernik Corporate Communications, RSA Christine.firstname.lastname@example.org Direct: 647 776 9404 Cell: 416 274 1448
SOURCE: RSA Canada
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CO: RSA Canada ST: Ontario NI: INS ERN
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