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
Notes to editors
To see RSA Group's release and a video, click here.
All figures shown are presented in UK IFRS basis.
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.
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
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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
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-0- Aug/01/2013 11:00 GMT
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