RSA reports excellent first quarter 2021 operating results
Stephen Hester, RSA Group Chief Executive, commented:
“RSA’s run of record performance continued in Q1 as the Group delivered a combined ratio of 86%, our best such quarterly result of the last decade. We also announced today that the bid from Intact and Tryg should complete at the end of May, having now received its required regulatory approvals. The RSA business we handover has never been in better shape. I would like to thank our customers for their enduring support and my colleagues for their continued professionalism and commitment.”
Trading update
Market conditions
- Insurance market conditions were largely unchanged in Q1.
Premiums
- Group gross written premiums of £2,045m were up 2% vs. Q1 2020.
Profitability
- Group business operating profit for Q1 nearly doubled versus Q1 2020, with a significantly improved combined ratio and lower investment income (as expected). Each of our three regions performed ahead of prior year.
- Underwriting profit components:
- Group weather costs were 1.7% of net earned premiums (Q1 2020: 3.7%).
- The large loss ratio was 9.8% (Q1 2020: 9.4%; Q1 2020 ex. exits: 8.8%).
- The attritional loss ratio improved overall, and in each region including and excluding covid impacts.
- Prior year development was more favourable than Q1 last year.
Balance sheet and capital
- Tangible shareholders’ equity at 31 March 2021 was £3.25bn (31 December 2020: £3.27bn). The quarter’s profits were offset by mark-to-market, pension and FX losses. Tangible net asset value per share was 313p (31 December 2020: 316p).
- The Group’s estimated Solvency II coverage ratio was 200%3at 31 March 2021 (31 December 2020: 189%). Including allowances for dividends both in current and prior years, the estimated ratio was 174%3 (31 December 2020: 170%). Reserve margin was unchanged during the quarter at above 5%.
Notes:
- This announcement is a trading update only, and does not constitute an interim report
- At constant FX
- The Solvency II capital positions at 31 March 2021 are estimated
- The Group uses Alternative Performance Measures, including certain adjusted measures, to help explain business performance and financial position. These measures have been calculated consistently with those presented in the consolidated financial statements for the period ended 31 December 2020
Investor and media enquiries
Rupert Taylor Rea
Group financial performance & investor relations director
e: rupert.taylorrea@gcc.rsagroup.com
t: +44 (0) 20 7111 7140
Matthew Cohen
Group investor relations manager
e: matthew.cohen@gcc.rsagroup.com
Natalie Whitty
Communications Director
e: natalie.whitty@gcc.rsagroup.com
m: +44 (0) 7584 342 052