RSA Canadian ops see results improve in third quarter

The Canadian operation of U.K.-based Royal & SunAlliance has produced strong results for the third quarter ending September 30, 2004, with combined ratio improving to 96.3% from 99.0% a year earlier.
Overall, the Canadian operation produced an underwriting profit of $10 million, a complete reversal of the $10 million underwriting loss produced for the same period a year earlier. The claims ratio for the third quarter came in at 69.4%, compared to 74.1% a year earlier, and the third-quarter expense ratio rose slightly to 26.9% this year compared to 24.9% a year ago.
The overall business result was $43 million, up from $21 million the year prior.
Strong results were particularly evident in the commercial lines segment, where the combined ratio for third-quarter 2004 improved to 99.6% from 111.6% a year ago. And while the commercial lines segment broke even on underwriting, this remained a vast improvement on the $8 million underwriting loss in the third quarter last year.
In personal lines, the third quarter 2004 combined ratio held steady at 95.6%, but the company was able to produce a $10 million underwriting profit compared to an underwriting loss of $2 million a year ago.