Multinational insurance group RSA has reported a £240 million underwriting profit for the first half of 2020.
Group total underwriting profit was £207 million while its combined ratio stood at 92.2%.
The company also posted an investment income of £134 million, down 13% after £6 million in COVID-19 impacts.
Stephen Hester, RSA Group Chief Executive noted that the company’s solid growth in underwriting profits are a result of continued business improvement actions.
Additionally, Hester said COVID-19 impacts on operating profits were broadly neutral in H1, though related financial market charges reduced our statutory results.
“Each region of RSA contributed in line or better than our plans, driven by improved attritional loss ratios,” added Hester.
“We are pleased with progress towards our ‘best in class’ ambitions, and the underwriting performance which is a first half record for RSA.
“COVID-19 has dominated recent months. Uncertain times put a special premium on sustaining customer service whilst operating safely and securely for our people and other stakeholders. This has been our focus and will remain so over the rest of the year.
“The recovery path from the pandemic itself is not yet certain, as well as its human and economic consequences. Nevertheless, we see good prospects for RSA remaining resilient and emerging strongly from this period.”
Net written premiums for the period stood at £3,136 million, down 3% from the first half of 2019.
RSA estimates that COVID-19 reduced NWP by around £110 million, consisting of price reductions, refunds, coverage changes and specific business line volume impacts.
“Given the particular challenges of 2020, our goals for the year are first and foremost to provide customer service, to safeguard our people’s health and to sustain financial strength and resilience.
“However, we are also determined that RSA should enter 2021 in good shape and with strong ‘business as usual’ results for this year, whatever the other challenges that superimpose on this. Half one is encouraging in this regard,” Hester concluded.
