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The insurer’s London Market business, reported as part of RSA’s UK and international region, will now revolve around four core portfolios: international hull, international cargo and transportation; international property; international engineering; and renewable energy risks. These specialisms were identified in a review of RSA’s international exposures as areas of existing strength and potential growth.
RSA is exiting other lines of business with immediate effect or at contract expiry. Due to profitability pressures, the insurer’s London Market business will stop writing international construction, international freight and fixed-price marine protection, and indemnity insurance in the near future. As for RSA’s London Market portfolios in international marine cargo and international marine transportation – moving forwards, they will be restructured into one unit under new leadership.
Tony Buckle, managing director of RSA Global Risk Solutions, which contains the group’s wholesale and specialty business, commented: “As a specialist insurer to the London Market, RSA will offer distinctive, best-in-class propositions to our customers in the segments on which we are focused. This will enable us to develop and sharpen our expertise, and manage our exposures and volatility more effectively. We will be working closely with our customers and their brokers to assist them in a smooth transition.”
All of the actions announced by RSA today are expected to reduce premiums written through the London Market by RSA by around one third year-on-year from 2018 to 2019.
“RSA has historically served the London international specialty and wholesale market across a broad range of products and exposures. The changes we are making to our portfolio will enable us to take a much more targeted approach, focusing our efforts on specialist areas where we have market leading expertise and capacity,” said Steve Lewis, CEO of RSA UK & International. “We will continue to evolve and build on this strategy over time in order to deliver sustained value for our customers and shareholders alike.”
