RSA reports premium growth

More Than insurer Royal & Sun Alliance today reported an 8% rise in first quarter personal insurance business as it drove through premium hikes for motor and household insurance cover.

The group, which is changing its name to RSA later this month, said it had seen personal insurance premiums increase to £265m (€338m) due largely to its More Than subsidiary.

RSA said premium rates had increased by 5% for personal motor insurance and by 4% for household cover, but said customers chose to stay with the group despite the higher renewal costs with a retention rate of more than 80%.

It added that partnerships with corporate clients to provide “white label” insurance products had also contributed to the premium growth, with total UK net premiums up 3% to £661m (€842m) in the first three months of the year.