UK insurer, RSA Insurance Group (RSA), reported a profit of £107mn in its half year results, recovering from a comparable loss of £249mn reported in H1 2021.
This bounce back consisted of £31mn in underwriting profit, compared to a £143mn loss reported in the first half of 2021, as well as investment result income of £61mn, up from £57mn in the first half of 2021.
Additionally central costs went up to £10mn from £6mn in 2021, and the company reported £25mn of other income and charges compared to a £157mn loss in last year’s first half.
According to RSA, the underwriting result was impacted by a £18mn de-recognition of software assets.
The group said: “Following the acquisition of the group by Intact Financial Corporation there has been an ongoing strategic reassessment of programme plans for certain internally generated software assets and as a result certain assets were identified for which there are no future economic benefits expected.”
Despite the positive results, the group’s net written premiums for the six month period ended 30 June 2022 were £1.53bn, a lower figure compared to the £1.71bn reported in the same period last year.
RSA noted that in 2021 the group made a profit from discontinued operations of £4.52bn, which included a £4.38bn gain on the disposal of the group’s operations in Scandinavia and Canada.
In addition, the group received a capital injection from Regent Bidco Limited – a wholly owned subsidiary of Intact Financial Corporation, the ultimate controlling party – of £294mn which was used to fund the repurchase of its Tier 1 notes.
In the same period last year, RSA received a capital injection from Regent Bidco Limited of £1.02bn.
The group has not declared a dividend in the period, according to RSA; for H1 2021, it paid Regent Bidco Limited ordinary dividends of £6.91bn.
Though the group saw positive results in this H1 2022, it said it will continues to assess its principal risks and uncertainties and how these are managed.
RSA noted: “Given the Covid-19 pandemic, the evolving and uncertain economic environment, increased inflation, increased geo-political tensions and the subsequent impact on issues such as supply chains, and other changes such as Brexit, there is considerable risk and uncertainty in the claims environment in 2022.”
