Insurer RSA has today announced its 2016 results, revealing a strong year that saw record underwriting profit and strong operating profits.
In Canada, the firm had a “strong and resilient year,” delivering an underwriting profit of £74m (CAD 121m) despite “absorbing its share of losses from Fort McMurray.”
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Net written premiums in Canada were up 6% at £1,443m (CAD 2,365m), the preliminary results show.
RSA Group made an underwriting profit of £380m (CAD 622m), up 73% from the previous year, despite net written premiums dropping slightly.
Group operating profit was up 25% to £655m (CAD 1,073m), beating a company forecast of £626m (CAD 1,026m), and stood at £140m (CAD 229m) in Canada.
Core Group combined ratio was 93.8%, compared to 96.0% the previous year, and 94.9% in Canada.
“In 2016 RSA took major strides forward, moving seamlessly from ‘successful turnaround’ to organic outperformance. Our improvements are both strategic and operational. They are delivering high quality sustainable results,” RSA Group chief executive, Stephen Hester, said in a release.
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Hester said that while industry and financial conditions will remain tough, the firm’s ambition now is to “drive its performance towards ‘best in class’ levels.”
“We plan to outperform through continuing self-help measures on customer service, underwriting and costs,” he added.
Hester told a media call earlier today that RSA shareholders were “benefiting significantly from not having sold to
Zurich,” following a failed plan in 2015 by
Zurich to buy RSA for £5.6 billion, a Reuters report said.
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