RSA shares are broadly flat this morning as RSA delivered a 1% increase in underlying net premiums, boosted at a reported level by weaker sterling and one off movements in Group Re. Profitability is reportedly strong, and growing faster than in the first half.
Nicholas Hyett, Equity Analyst at Hargreaves Lansdown:
"Today’s results show more of the same at RSA. Premiums are broadly flat at constant currency, but progress on costs and underwriting suggests the bottom line continues to improve.
That more or less sums up Stephen Hester’s vision for a slimmer more focussed group.
However, there’s a limit to how far costs can be cut. Eventually the group will need to start growing its gross written premiums, and in the highly competitive, price driven world of commercial and personal insurance, that could well prove a challenge."
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