RSA group shared its Q3 strategic and trading update 6th November 2014:
- Good progress continues across RSA’s restructuring actions to achieve strategic refocus, capital strengthening and cost reduction
- Headline Q3 profit strong due to disposal gains. Q3 underwriting result weak overall
- Premiums down 9%1 (down 3%1 underlying) in line with H1 trends and guidance
Stephen Hester, RSA Group Chief Executive, commented:
“The building blocks to support RSA’s recovery are coming together. Since H1 we announced new disposals in Singapore, Hong Kong, China and Italy. The disposals of Noraxis, and our businesses in Poland, Lithuania and Estonia have completed, booking strong gains.
Our capital position strengthened further through these disposals, and a £400m subordinated bond issue in early October underlined RSA’s credit improvement. We are progressing well in the areas of cost reduction, underwriting actions and refreshing our management line-up.
Overall, work continues towards meeting the medium-term performance targets we have set. Soft insurance and investment market conditions and a conservative outlook for prior year profit emergence seem likely to put even more emphasis on improving underwriting and cost re-engineering, which will take time to have full effect.”