Proactive Investors - Run By Investors For Investors

RSA Insurance sees ‘Beast from the East’ hit its first-half operating profits

The FTSE 100-listed firm posted a 15% fall in its operating profit for the six months to 30 June 2018 to £304mln, own from £360mln, with the costs from adverse weather in the period £53mln in excess of the five-year average
RSA boss Stephen Hester
Underwriting profit fell 23% to £171mln, while net written premiums were down by 5% to £3.2bn on a constant currency basis

RSA Insurance PLC (LON:RSA) saw the severe winter weather earlier this year hit its first-half operating profits, while net written premiums also fell.

The FTSE 100-listed firm posted a 15% fall in its operating profit for the six months to 30 June 2018 to £304mln, own from £360mln, with the costs from adverse weather in the period £53mln in excess of the five-year average.

READ: RSA profits hit by winter weather but shares rise as gross written premiums gain

The group saw its underwriting profit fall 23% to £171mln, while net written premiums down by 5% to £3.2bn on a constant currency basis, and its combined ratio weakened to 94.7%, down from 93.2% in 2017.

RSA said group weather costs were £155mln in the first half, or 4.9% of net earned premiums, with Canada the most affected region with a weather ratio of 10%, twice the annual average.

The company said, in the UK & Ireland, Storms Eleanor and Emma – the latter known as the 'Beast from the East' – cost it an estimated £47mln pre-tax.

RSA chief executive Stephen Hester said: “First half underwriting results were below our ambitions due to adverse weather costs.

“On an underlying basis we showed areas of excellent performance, however, and with much we can continue to improve."

He added: "We enter the second half of 2018 with confidence, while mindful of market challenges."

The firm increased its interim dividend by 11% to 7.3p a share, up from 6.6p a year earlier.

In early morning trading, RSA shares were 0.7% lower at 637.2p.

View full RSA profile View Profile

RSA Insurance Group Timeline

Related Articles

March 29 2018
Chesnara said it has made good progress on integrating Legal and General Nederland and the benefits were slightly ahead of expectations
Post box
July 20 2018
Overall, trading is in line with management's expectations and ahead of last year

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use