RSA moves away from motoring with growth in newer markets
INSURANCE group RSA said it was off to a good start to the year as newer markets offset a slump at its car insurance business, More Than.
Net written premiums rose five per cent to £2.2bn in the first quarter of the year, thanks to a rate hike coupled with a one per cent uptick in volumes.
Emerging markets delivered much of this growth, with net written premiums rising 20 per cent to £281m. This was enough to offset mixed results closer to home, with a 17 per cent drop in car insurance premiums by value, following an eight per cent rise in rates, and a two per cent dip in personal coverage in the UK.
Overall UK premiums rose four per cent to £725m. RSA’s commercial arm posted an 11 per cent jump in written premiums to £395m, and there was good progress in its expanding pet insurance division.
RSA’s investment portfolio shrank slightly to total £14.4bn at the end of March, which was due to a £33m foreign exchange hit and other movements causing a £47m dent.
The firm has not changed its full-year outlook and expects good premium growth and around £500m of investment income for the year.
Analysts at Credit Suisse said in a note that the update was “solid… though lacking in anything that is likely to shift existing perceptions.” Revenue growth fell slightly short of expectations due to a lack of M&A gains in the year so far, they added.