March 13, 2019 11:30
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After having returned to profitability in 2017, RSA Canada has managed to hold it in 2018. The insurer has realized an operating profit of 84 million pounds sterling (M£) for the year. Nevertheless, this is a decrease compared to the operating income recorded in the year 2017, which was $ 153 Million£.
The combined ratio also deteriorated, reaching 96,7 %, net of reinsurance, compared to 93.9 % in the previous year.
The weather events in question
The insurer points out that the canadian market has been particularly hit by the volatile weather and an inflation in claims auto insurance in 2018. In effect, the claims ratio increased by more than 6 percent between 2017 and 2018, ranging from 65.3% to 71.5 %.
The ratio of losses related to weather conditions has almost doubled compared to 2017, rising to 6.8 %, compared to a five-year average of 4.7 %. “The insured losses arising from weather events, violent in 2018 reached $ 1.9 billion for the sector, which represents the fourth year of losses the largest on record [in Canada]. Compared to our peers, our portfolio contains a little more risk in the goods, which are more exposed to meteorological phenomena, ” says RSA.
However, the hardening of the market “help to consider implementation of corrective measures’ rate.
Slight increase in premiums written net
Premiums written, net, increased 6 % to $ 1.65 billion pounds sterling (£). The customer retention was 90% for individual insurance and 83% in business insurance. RSA says that it has improved in all sectors, except those having undergone corrective action subscription.
RSA said it expected to see its sales increase in the second quarter of 2019, while several fonts from the partnership between its subsidiary , Johnson Insurance and Scotiabank, announced last July, will be renewed. Scotiabank has chosen Johnson for the distribution of products of home and automobile insurance to its subsidiary, SNB Insurance Agency.