Royal & SunAlliance (R&SA) confirmed that it had reviewed approaches for its Codan business, but said it remained committed to the market as it released its first half results.
“In Scandinavia we have a good business that is well positioned in its market. We will not be pursuing the approaches that we have received for Codan but, as with all of our businesses, will continue to explore ways to strengthen our position further and enhance the value of our business,” said chief executive Andy Haste.
For its UK business, R&SA reported a combined ratio of 93.6%, an improvement on the 97.1% reported for the first half of 2003.
This breaks down into a combined ratio of 97.4% for UK personal lines, and 91.9% for UK commercial lines, said the company.
As anticipated, following the sale of the UK Healthcare & Assistance business in 2003 and the cessation of renewals on the HBOS book of business from 1
January 2004, overall personal lines premiums fell by 25%, said the insurer.
Net of quota share, personal intermediated premiums fell by 57%, reflecting the significant restructuring of the motor book during 2003 and the HBOS exit, while More Th>n premiums grew by 3% over the year.
R&SA said policy growth in motor of 10% was encouraging in the competitive environment.
The commercial result for the first half was good with a combined ratio of 91.9%, down from 94.4% in 2003. For the insurer's property portfolio, the combined ratio was 82.3%.
Overall commercial premiums, excluding the effect of the Munich Re quota share, were 4% down on 2003.
The insurer said rates were reaching a plateau on certain commercial lines of business.
