RSA cuts fullyear profit target after £ 50m hit
Insurer RSA has taken a £ 50 million hit following major hurricanes in the US and Caribbean, warning it may have to make further provisions as it awaits new client claims.
The company outlined the cost sin a trading update where it assured that it has made “continued progress” as group premium income rose 8 per cent to £ 5 billion year- todate “despite hurricane costs” in the third quarter.
RSA said the hurricane provision had been booked in its UK business segment.
Hurricane losses and added difficulties in the UK weighed on overall under writing results, which are now “slightly weaker” than a year earlier.
Chief executive Stephen Hester said: “The progress at RSA overall leaves group profits ahead of the same period in 2016, though by less than we had targeted.
“We are continuing to drive business enhancements across the group whilst taking further under writing action in some portfolios to improve performance for 2018.”