RSA Insurance Group suffers loss in first half

RSA Insurance Group, which announced its exit from the UK personal lines motor insurance market earlier this year, posted a loss in the first half of 2023.

Here’s how the British insurer fared in the six months ended June 30:

In its interim management report, RSA said: “Profit before tax of £55 million consists of £82 million underwriting profit (2022: £86 million profit), investment result £79 million (2022: £59 million), £7 million central costs (2022: £10 million), and (£99 million) of other income and charges (2022: £89 million).

“On March 28, 2023, the group announced its exit from the UK personal lines motor insurance market. Profit before tax in the six-month period to June 30, 2023 is impacted by the de-recognition of £34 million of software assets in relation to this withdrawal.

“In the six-month period ended June 30, 2022, software assets with a net book value of £18 million were de-recognised. In addition, other income and charges includes £26 million of acquisition and integration costs (2022: £45 million).”

As of June 30, 2023, the insurer’s net assets amounted to £2.21 billion.

Meanwhile, RSA noted: “The group provides insurance to the Motability Scheme. On July 22, 2021, it was announced that Motability Operations Ltd had decided to move their business to a different insurer. On June 24, 2023, a contract variation was signed to formalise exit arrangements. This has resulted in the reversal of net written premium of £168 million.

“There is no impact on insurance revenue. The reversal of net written premiums is provided for and consequently has no impact on the movement in earned premium.”

RSA did not declare a dividend in the period.

What do you think about this story? Share your thoughts in the comments below.