Insurer RSA reports 24% decline in Irish income as weather takes its toll

Net written premium income at UK insurer RSA’s Irish operations fell by 24% to £75m (€91m) in the first quarter of this year, with weather hitting its business here.

RSA — which took a £200m hit last year as a result of accounting irregularities at its Irish division — reported a 15% decline in group revenue for the period, after it sold assets to bolster its balance sheet.

Net written premiums fell to £1.98bn in the three months to the end of March, compared with £2.3bn a year earlier.

The London-based firm said it continues to expect full-year premiums to be 10% lower than in 2013.

“We have taken action to address underperforming portfolios, the results of which can be seen” in the numbers, said new CEO Stephen Hester.

“Underlying premium and profit trends are generally in line with our expectations.”

Since succeeding Simon Lee in February, Mr Hester has overseen a $1.3bn ($98m) rights issue, scrapped the dividend, and sold assets in Europe to restore the balance sheet.

RSA reported lower revenue across all its main markets including Scandinavia, Canada, and Latin America. Net written premiums in the UK and western Europe, tumbled 18% to £785m. The insurer has earmarked further assets sales this year.

PZU, central Europe’s largest insurer by market value, last month agreed to pay a combined €360m for four RSA businesses in Lithuania, Latvia, Estonia, and Poland.

RSA’s shares have jumped 21% this year.