(Alliance News) - RSA Insurance Group PLC after the London market close on Thursday said it had a strong start to 2021, leaving the firm in good health as it prepares for new ownership.
The insurer reported gross written premiums of GBP2.05 billion in the first quarter of 2021, up 2% on a year ago. Business operating profit "nearly doubled", it said, with a significantly improved combined ratio and lower investment income.
Insurance market conditions were "largely unchanged" in the period, it added.
"RSA's run of record performance continued in Q1 as the group delivered a combined ratio of 86%, our best such quarterly result of the last decade. We also announced today that the bid from Intact and Tryg should complete at the end of May, having now received its required regulatory approvals," said Chief Executive Stephen Hester.
"The RSA business we handover has never been in better shape."
In a separate release on Thursday, RSA said its takeover is expected to become effective at the start of June.
In mid-November, RSA Insurance had agreed to be sold in a deal with a two-headed consortium which valued the insurer at GBP7.2 billion.
The deal will see the insurer divided between Canada's Intact and Scandinavian insurer Tryg AS. Tryg's contribution will be GBP4.2 billion with Intact's portion of the deal amounting to GBP3.0 billion.
Under the deal, RSA shareholders will receive 685 pence in cash for each share. In addition, RSA shareholders will be entitled to receive the insurer's interim dividend of 8p.
Shares in RSA closed down 0.1% at 682.80p in London on Thursday.
By Lucy Heming; lucyheming@alliancenews.com
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