June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

Bad weather hits insurer RSA H1 operating profit

Published 2018-08-02, 02:19 a/m
© Reuters.  Bad weather hits insurer RSA H1 operating profit
RSAl
-

LONDON, Aug 2 (Reuters) - Insurer RSA RSA.L posted a 15 percent drop in first-half operating profit to 304 million pounds ($398.33 million) on Thursday, hit by bad weather conditions, particularly in Canada.

The operating profit was in line with a forecast 303 million pounds, according to a company-supplied consensus forecast.

"First half underwriting results were below our ambitions due to adverse weather costs," Chief Executive Stephen Hester said in a statement.

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

RSA, best known in Britain for its More Than brand, also has major businesses in Canada, Ireland and Scandinavia.

Net written premiums dropped 5 percent to 3.2 billion pounds in constant currency terms, below a forecast 3.4 billion pounds, and underwriting profit fell 23 percent to 171 million pounds.

The firm's combined ratio weakened to 94.7 percent from 93.2 percent a year earlier, with Canada the worst performer. A level below 100 percent indicates an underwriting profit.

RSA said it would pay an interim dividend of 7.3 pence per share, in line with forecasts and up 11 percent.

($1 = 0.7597 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.