Telematics drives RSA performance
RSA has reported a positive start to 2015 with a 14% growth in net written motor premiums mainly driven by a strong performance in its telematics offering.
In a statement, the insurer claims to have continued to maintain pricing discipline with year-to-date average rate increases on renewed motor business of one per cent. In UK commercial, motor growth was driven by good retention and targeted new business in its fleet portfolio, and Motability changes as the portfolio balance shifts to the new contract.
Commenting on the group’s Q1 2015 Interim Management Statement, Stephen Hester, RSA Group chief executive, said, ‘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.’