R&SA UK profit up 66% in 9 months

Royal & Sun Alliance (R&SA) has delivered nine-month results in line with market expectations at £488m, an increase of 102% on the same period last year.

The company said profit after tax was £378m and net written premiums were up 12% on the year at £4.1bn. The combined operating ratio was 93.1% (2004: 94.2%).

UK underwriting profit was up 66% to £111m and produced a combined ratio of 92.9% (2004: 96.0%).

The company said however, that the UK market remains competitive: "In Personal we are achieving low single digit rating increases and Commercial rates are off about 5%, but we have successfully targeted profitable new business and driven improved retention.

Net written premiums were £2bn, up 4% on the prior year (2004: £1.9bn), with UK Personal up 6% and UK Commercial up 4%.

Commercial lines saw underwriting almost double to £92m. R&SA said: "We continue to target new business opportunities achieving around £170m of profitable new business in the nine months and have grown policy numbers in marine, risk solutions and property investors.

Retention is strong, up 4% on 2004 to 85%. The commercial market remains mixed, but we are maintaining underwriting discipline and our focus on achieving technical price.

Personal lines saw net written premiums up up £34m on the previous year to £639m. The underwriting profit rose only £1m to £19m.

The company said that MORE TH>N was increasing web sale and these now account for around 50% of its motor new business sales.

Chief executive Andy Haste said: "I am confident that with the strength of the Core Group, our focus on execution and our disciplined underwriting we can continue to deliver sustainable profitable performance."