RSA share price: Insurer reveals Q1 results

on May 7, 2015
Updated: Oct 21, 2019
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RSA Insurance Group (LON:RSA) today released its Q1 2015 interim management statement.

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**Highlights from the company’s statement:**
Strategic update:
Continued good progress on our Action Plan to secure strategic focus, capital strength, and sustainably improved business performance; Completed disposals of Singapore and Hong Kong (gain on sale £109m); announced disposals of minority interest in India and our UK Engineering Inspection business.
On plan for Solvency II internal model submission in Q2. Capital ratios at Q1 are slightly up versus year end, in line with our expectations; Costs and headcount are falling as expected. Remediation in Ireland continues.
Trading update:
Core Group net written premiums of £1.5bn, up 1%1 (up 5% ex new Group reinsurance programme). Underlying trends in line with expectations across all regions; Underwriting result seasonally subdued but largely as planned, with some variability by region; Investment performance is on track to deliver around £380m of income in 2015; Q1 net attributable profits a little ahead of our plans and included anticipated disposal gains; Tangible equity £3.0bn (31 December 2014: £2.9bn); Capital metrics at 31 March 2014: IGD surplus c.£1.9bn with coverage of 2.3 times; Economic capital surplus c.£0.9bn with coverage of 1.3 times.
Stephen Hester, RSA Group Chief Executive, commented: “RSA made encouraging progress in Q1. Premium income returned to modest growth. Costs are falling as planned. Disposals were completed in Asia and others were contracted in India and for UK Engineering Inspection.
“Operating profit and underwriting performance were up on Q1 2014 though variable across different parts of the Group as can be expected in any single quarter. In particular our UK business results are gaining strength.
“Our near-term ambition is to have substantially completed the strategic focus and capital elements of our restructuring plan as we go into next year; to deliver improved underlying results in 2015 and to be making good progress towards our medium term performance targets.
“Lower interest rates and currency moves in our key territories continue to have adverse impacts, whilst insurance markets remain competitive. The path to high quality outperformance will not be smooth or easy, but our focus on that goal is clear.”
**More to follow…**
As of 07:22 BST, Thursday, 07 May, RSA Insurance Group plc share price is 418.00p.

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