Royal & SunAlliance Canada reports increase in underwriting profit in 2007

Royal & SunAlliance Canada has reported its 2007 net income was Cdn$183.6 million.
(The company’s net income above was calculated according to Canadian GAAP rules; elsewhere, figures are based on accounting rules in the United Kingdom.).
Royal & SunAlliance reported net written premiums of Cdn$1.5 billion (702.7 million), up 8.7% over the prior year. Its underwriting profit of Cdn$106.3 million (49.7 million) in 2007 was 6.1% ahead of its result last year.
The company’s combined operating ratio (COR) of 92.4% was comparable to last year, the company said in a release.
“It’s been another strong year for R&SA Canada,” company president and CEO Rowan Saunders said in a press release. “We achieved growth of 8.7%, which is well ahead of the industry average, and continue to focus on sustainable, profitable growth.”
Saunders went on to say 2007 was “a very successful year” for R&SA in part because of the acquisition of B.C.-based Canadian Northern Shield, which closed on Dec. 31. The acquisition represented “the first major acquisition in the industry in the past couple of years.”
As far as Royal’s Canadian results go, the company’s commercial insurance division reported net written premiums of Cdn$391.9 million, a COR of 90.3% and an underwriting profit of Cdn$38.5 million. “On the whole, the commercial insurance book has achieved modest growth, with our small business solutions segment reporting 8% growth,” the company reported.
The personal insurance division, including Johnson Inc., reported net written premiums of Cdn$1.1 billion, a COR of 93.3% and an underwriting profit of Cdn$67.7 million.