Last checked at 11 Mar 2022 16:25
RSA Insurance Group Limited
(the "Group")
2021 Preliminary Results
RSA Insurance Group Limited, formerly RSA Insurance Group plc, was re-registered as a private limited company on 26 May 2021 and 100% of its ordinary share capital was purchased by Regent Bidco Limited, a wholly owned subsidiary of Intact Financial Corporation (IFC or Intact), on 1 June 2021 (the Acquisition). On 1 June 2021, the Group disposed of its operations in Scandinavia (Codan A/S) and Canada (Roins Holdings Limited), and these have been classified as discontinued operations (refer to note 7 Discontinued operations of the financial statements for further information).
Trading performance
The Group reports a profit before tax of £4,332m for the year ended 31 December 2021, of which continuing operations contributed a loss of £228m and discontinued operations a profit of £4,560m (31 December 2020: £17m loss and £500m profit respectively).
Continuing losses before tax of £228m consisted of £137m underwriting losses (2020: £33m profit), £110m investment result (2020: £110m), £11m central costs (2020: £12m) and £190m of other charges (2020: £148m).
On the same continuing basis, profitable current year underwriting performance was outweighed by reserve and margin strengthening of approximately £180m, to reflect evolving estimation uncertainty and to align to IFC practices. The underwriting result was further impacted by a £72m write-down of software assets and a £34m net impact relating to a reinsurance contract purchase for adverse development cover (which will reduce the potential volatility in the Group's historical claims liabilities), including partial offset from reduced reserve margin in light of the increased reinsurance protection. Other charges were also impacted, with £136m acquisition and integration costs, and £53m debt buyback costs.
Profit from discontinued operations before tax included a £4,393m gain on the disposal of the Group's operations in Scandinavia and Canada.
Net written premiums were £4,474m of which £3,293m were in respect of continuing operations and £1,181m from discontinued (2020: £3,038m and £3,185m respectively).
Net assets of the Group are £3,091m (2020: £4,730m).
Commenting on the Group's 2021 full year financial results, RSA CEO Ken Norgrove, said:
"It's fantastic to see that the hard work and customer focus of all the teams across our business is paying off and delivering results. Whilst impacted by specific items associated with the takeover transaction, we've delivered a strong performance across UK&I - with particular progress made in our UK Commercial Lines and Specialty portfolios, and our flagship Home and Pet businesses.
I'd like to thank Scott Egan and Charlotte Jones for leading RSA through the complexities of 2021 and to all my colleagues, as well as our brokers, partners and customers for choosing RSA for their ongoing support.
My focus in 2022 is to work with the teams across RSA and Intact to build on our continued progress and chart a course to outperformance."
Further details of the Group's 2021 Preliminary Results are available on the Group's website www.rsagroup.com.
Enquiries:
Alexander Jones Natalie Whitty
Head of External Communications Group Communications Director
RSA Insurance Group Limited RSA Insurance group Limited
Alexander.z.jones@uk.rsagroup.com Natalie.whitty@gcc.rsagroup.com
Statement in accordance with section 435 of the Companies Act 2006
Neither the financial information set out in this announcement nor the preliminary financial statements published on the Group's website includes an auditor's report or constitutes statutory accounts of the RSA Insurance Group Limited for the years ended 31 December 2021 or 31 December 2020, however such information is derived from those statutory accounts. Statutory accounts for 2020 have been delivered to the Registrar of Companies, and those for 2021 will be delivered in due course. RSA Insurance Group Limited's auditors have reported on those statutory accounts, and their reports (i) were unqualified, (ii) did not include reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not include a statement under section 498(2) or section 498(3) of the Companies Act 2006.
The above statement is also disclosed as a note at the end of the preliminary financial statements published online.