Fitch affirms RSA's 'A' rating

Fitch has maintained RSA’s insurer financial strength rating at A, and its long-term issuer default rating (IDR) at A-, both with a stable outlook.

The rating agency also affirmed the long-term IDR of RSA’s holding company, RSA Insurance Group plc, at BBB+ with a stable outlook.

In a statement, Fitch said RSA’s ratings reflect the group’s “solid operating profile, strong business franchise and growing geographical diversification”.

The ratings also take into account RSA’s ability to maintain strong underwriting profitability, its prudent reserve levels and low-risk investment portfolio. Fitch said it “considers that these strengths to some extent compensate for a capital position that looks weaker than similarly rated peers”.

Fitch views RSA’s stable earnings generation, with solid underwriting controls, as a positive rating factor. RSA’s combined ratio in 2012 held fairly steady at 95.4% (2011: 94.9%).

Fitch listed the key triggers for a future rating downgrade of RSA as a significant and sustainable deterioration capitalisation or underwriting performance. A material and sustained improvement in RSA’s capital position could lead to a rating upgrade, it said.