Money Story

05 September 2008 07:32 BST

Royal & Sun Alliance reports premium growth

Thursday, 08 May 2008 13:08

Royal & Sun Alliance reports eight per cent premium growth

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Royal & Sun Alliance has posted an eight per cent first quarter increase in group net written premiums of £1.7 billion on a strong performance in emerging markets.

The company's emerging markets business delivered double-digit growth, with premiums up 23 per cent to £163 million, with strong growth in the Baltics, Latin America and Asia and the Middle East.

Although UK premiums increased by only three per cent to £661 million, other insurers have been reporting a UK slowdown.

French insurer AXA recently reported a 2.7 per cent drop in first quarter sales due to the credit crisis and last month Europe's biggest insurer Allianz posted a €2.5 billion write-down.

Chief executive Andy Haste said: "It has been a good start to 2008. Our three month premiums clearly demonstrate the benefit of our strong and diversified portfolio.

"Market conditions remain challenging, however, we continue to exercise tight operational and financial management, including taking the right action on rate and expenses, to deliver sustainable profitable performance. We remain confident of achieving a strong result in 2008 and beyond."

Personal lines premium growth increased by eight per cent to £265 million driven primarily by growth in More Than, the company said.

Royal & Sun Alliance increased its premiums on motor insurance in the UK by five per cent and on household by four per cent to boost margins.

The company had to raise premiums after it was hit hard by last summer's flooding, which resulted in a high level of claims. End of story

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Money Story

Royal & Sun Alliance reports premium growth

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Also In The News

British American Tobacco posts 18% profit rise

Budget airline easyJet hit by high fuel costs

AXA revenues dip 2.7% in first quarter