Half Yearly Financial Report to 30 June 2009
Strong Group performance in challenging conditions
- Net written premiums of £3.5bn up 4%
- Combined operating ratio (COR) of 93.5%
- Operating result of £392m
- Profit before tax of £301m
- IGD surplus of £1.7bn, representing coverage of 2.4x
- Interim dividend up 7% to 2.92p
Delivery against strategic objectives
- Driving the Group forward through organic initiatives and acquisitions
- Maintaining tight operational and financial management
- Continuing to take the right action on rate and expenses
- Successfully issued £500m of lower tier two subordinated debt
- Strong capital and financial position
- Further de-risked the UK defined benefit pension schemes by insuring £1.9bn of liabilities
Outlook
- Combined operating ratio for 2009 expected to be around 95%
| |
6 Months 2009
|
6 Months 2008
|
Movement*
|
| Net written premiums |
£3,486m
|
£3,364m
|
+4%
|
| Underwriting result |
£183m
|
£179m
|
+2%
|
| Combined operating ratio |
93.5%
|
93.0%
|
(0.5)pts
|
| Operating result (1) |
£392m
|
£440m
|
(11)%
|
| Profit before tax (1) |
£301m
|
£395m
|
(24)%
|
| Profit after tax (1) |
£223m
|
£292m
|
(24)%
|
| Interim dividend per ordinary share |
2.92p
|
2.73p
|
+7%
|
| |
30 June 2009
|
31 December 2008
|
|
| Financial position |
|
|
|
| Shareholders' funds |
£3,507m
|
£3,839m
|
(9)%
|
| Net asset value per share excluding IAS19 |
95p
|
101p
|
(6)%
|
| Net asset value per share |
101p
|
112p
|
(10)%
|
* Reported exchange rate
(1) For a reconciliation of operating result to profit after tax see page 12 of the full report
Andy Haste, Group CEO of RSA, commented:
“In what remain challenging trading and economic conditions, we have again delivered a robust performance. We’ve targeted profitable organic growth and completed acquisitions in Central and Eastern Europe, Canada and Ireland. We’ve maintained our tight operational and financial management and continued to take the right action on rate and expenses. We successfully completed our £500m subordinated debt issue and remain in a strong capital and financial position. These results continue to demonstrate the positive impact of our diversified portfolio and our high quality, low risk investment strategy.
With these actions and the strength of the portfolio, we are well positioned to take advantage of market opportunities and remain confident in the Group’s ability to continue delivering sustainable profitable performance. As it stands today, we expect to achieve a combined operating ratio for 2009 of around 95%. The outlook for the Group is positive and this is reflected in the 7% increase in the interim dividend to 2.92p (H1 2008: 2.73p).”
For further information:
| Analysts |
Press |
|
Claire Cordell
Tel: +44 (0) 20 7111 7212
Mobile: +44 (0) 7834 944 204
Suzannah Oliver
Tel: +44 (0) 20 7111 7140
Mobile: +44 (0) 7827 843 749
|
Jon Sellors
Tel: +44 (0) 20 7111 7047
Mobile: +44 (0) 7711 701 806
Simon Kutner
Tel: +44 (0) 20 7111 7327
Mobile: +44 (0) 7795 445 656
Faeth Birch (Finsbury)
Tel: +44 (0) 20 7251 3801
Mobile: +44 (0) 7768 943 717
|
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