RSA Insurance Q1 Net Written Premiums Down; Backs Outlook - Quick Facts

(RTTNews) - RSA Insurance Group Plc (RSA.L, RSANY.PK) reported Thursday that its first-quarter underlying net written premiums declined 4 percent at constant exchange rates.

In its interim management statement, the company noted that underlying profit trends were broadly in line with expectations with good results in Scandinavia.

In the net written premiums, The company said the 4 percent underlying reduction reflects both the start of planned portfolio actions and lower new business acquisition as a result of focus on pricing and capital discipline. Headline constant exchange rate decline was 9 percent, of which 3 percent related to the Group Adverse Development Cover, and 4 percent to Motability where the company has restructured contract.

Stephen Hester, RSA Group Chief Executive, said, "There has been intense activity in the first quarter of 2014. …. Underlying premium and profit trends are generally in line with our expectations. Poor weather in the UK, Ireland and Canada negatively impacted first quarter profits."

Looking ahead the company said its expectations for underlying results in 2014 are unchanged, and in the medium term the company continues to target returns on tangible equity of 12-15 percent on a rising tangible equity base.