December 1, 2003 by Canadian Underwriter
As parent company Royal & SunAlliance Group announced its overall losses had narrowed to 146 million pounds from 156 million pounds for the first nine months of 2003, the Canadian operation says its own financial results are improving.
Despite losses due to the B.C. forest fires and Hurricane Juan, RSA Canada improved its combined ratio to 101.1% for the first nine months of this year. Other mitigating factors include environmental losses and the company’s portion of losses related to the Facility Association (FA) – the industry’s pool for high-risk drivers.
The Canadian operation’s net written premiums for the latest nine month reporting period are above its own expectations, with the company having primarily benefited from higher investment returns. RSA Canada says it has achieved an underwriting profit in all lines of business except for auto and liability. “The solid work of the recent year has laid a strong foundation for the future of Royal & SunAlliance,” the company says. “Our short objective is to return to sustained profitability through increasing our sophistication and skills in underwriting and claims management. With the renewed commitment to the Canadian operation from our corporate center in the U.K., we will focus on building a platform to sustain profitability through the insurance cycles.”