Insurer tops forecasts after UK improvement

Insurer Royal & Sun Alliance benefited from a strong performance in the UK today as it posted first-quarter figures ahead of expectations.

The group said operating profits rose to £207m (€301.5m), a gain of 29% on a year earlier and higher than the £200m (€291.3m) forecast by some analysts.

R&SA said the the UK market remained competitive, but added that it had maintained a “disciplined approach” to underwriting and pricing and focused on customer service to ensure good levels of business retention.

Favourable weather and a strong performance in household meant the UK arm’s combined operating ratio (COR) in personal insurance was 94.4%, 4.4 points better than a year ago.

A figure below 100 indicates profitability as the COR figure represents the amount of money spent paying out on claims and in costs for every £1 (€1.50) of premiums taken in.