RSA Canada reports 8% increase in net written premiums for 2012

RSA Canada has reported an 8% growth in its 2012 financial results, to $2.55 billion in net written premiums, compared to roughly $2.36 billion the year before.

“Strong organic growth across personal and commercial broker product lines was supplemented by three months benefit from the acquisition of L’Union Canadienne, which provides RSA with a robust platform in one of the country’s strongest and most stable insurance markets, positioning us well for future growth,” Rowan Saunders, RSA Canada’s president and CEO commented in a statement on the earnings.

Commercial lines premiums were up 11% to $828 million, which the company attributes in part to “significant new business wins for Global Specialty Lines (formerly Large Commercial & Specialty).”

Personal lines premiums, including Johnson Inc., were up 7% to $1.72 billion, which RSA says was driven by strong rating action across all provinces, continued good retention rates in its home and auto portfolios and new business within Personal Specialty Insurance.

The 2012 underwriting result was $155 million, compared to $186 million in 2011.

Underlying results were offset by increased large and weather-related losses, as well as “the identification and resolution of an isolated issue in the reserving for bodily injury and accident benefits  within Johnson’s pre-reform Ontario auto portfolio.”

“We expect to continue to outperform market growth rates in 2013, with a focus on integrating L’Union Candienne and extracting value from 2011’s GCAN acquisition, while accelerating growth in Personal Specialty Insurance, including Travel and Pet,” Saunders noted.  

Globally, RSA posted an operating result of £684 million, down from £727 million in 2011. Its net written premiums rose 5% to about £8.4 billion. At press time, one British pound was equal to $1.55.