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RSA, the Liverpool insurance group, reported strong first quarter results today.
Net written premiums were up 5% at £1.9bn, including a 3% rise in international net written premiums of £1bn and a 7% improvement in the UK figures of £697m.
Acquisitions have been confirmed in Sweden, Denmark and Oman as part of chief executive Andy Haste’s ‘bolt-on’ policy.
And the group has clinched a deal with supermarket giant Tesco to provide pet insurance which should deliver around £100m of premiums in its first full year.
The COR – combined operating ratio which is the amount of money spent on claims and costs for every £1 of premiums taken – is reiterated at 95% for 2010, despite a couple setbacks.
RSA is the largest insurer in Chile and it said the recent earthquake there has so far cost the group £30m.
Losses and severe winter weather claims in the UK, Ireland and Scandinavia have also come in at £80m more than budgeted.
But looking ahead the group said it expects international operations to deliver mid-single digit growth, the UK to remain in positive territory and its emerging markets to return to double digit growth over the longer term.
RSA, which employs about 1,200 staff at its Capital Building and Mercury Court sites including its More Th>n general insurance business, forecasts full year investment income of around £540m.
Andy Haste said: “We have built good top-line momentum in the first quarter, with strong growth in the UK, Canada and Latin America.
“As we celebrate our 300th anniversary we look to the future with confidence.
“We are well placed with a great set of businesses with strong positions in attractive markets and we remain confident of our ability to deliver targeted growth and sustainable profitable performance.”
Liverpool stockbroker Panmure Gordon welcomed the group’s momentum in net written premiums and its strong capital position.
Analyst Barrie Corners added: “The shares have fallen too far in our view. Buy.”