Group News

Year End Results 2009

3/2/2010 - Year End Results 2009

Strong Performance in 2009

  • Net written premiums of £6.7bn up 4%
  • Combined operating ratio (COR) of 94.6%
  • Operating result of £777m
  • IGD surplus of £1.7bn, representing coverage of 2.4x
  • Net asset value per share excluding IAS 19 of 106p
  • Maintaining tight grip and strong financial management

Delivery against strategic objectives

  • Driving the Group forward through targeted growth and acquisitions
  • Continued action on rate and expenses
  • Significant de-risking of pension schemes in 2009. Further action in 2010
  • Strong capital and financial position

Outlook

  • Although economic uncertainties remain, confident of continuing to deliver excellent results
  • Good start to 2010 and on top line going forward we expect:
    -International to deliver mid single digit growth
    -UK to move to positive territory
    -Emerging Markets to return to double digit growth over time
  • Combined operating ratio for 2010 expected to be around 95%
  • Investment income for 2010 expected to be around £540m with total gains around 2009 levels
  • Final dividend increased by 7% to 5.33p, giving a full year dividend increase of 7%

 

  12 Months
2009		 12 Months
2008		 Movement*
 
Net written premiums £6,737m £6,462m +4 %
Underwriting result £386m £384m +1 %
Combined operating ratio 94.6% 94.5% (0.1)pts
Operating result (1) £777m £867m (10)%
Profit before tax (1) £554m £759m (27)%
Profit after tax (1) £419m £586m (28)%
       
  31 December
2009		 31 December
2008		   
Financial position         
Shareholders' funds £3,491m £3,839m (9)%
Net asset value per share excluding IAS 19 106p 101p +5 %
Net asset value per share 99p 112p (12)%
       
Final dividend for the year per ordinary share 5.33p 4.98p +7%
Dividend for the year per ordinary share 8.25p 7.71p +7%

* Reported exchange rate

 

Andy Haste, Group CEO of RSA, commented:
“2009 was a good year for the Group. We delivered another strong performance and have driven the Group forward through targeted organic growth and acquisitions in Emerging Markets and International.  We’ve continued to take the right action on rate and expenses and delivered a positive underwriting result in all regions. Our capital position remains strong. 

As we move into 2010, economic uncertainties remain. However, we are confident of our ability to continue to deliver excellent results. We have a great portfolio of businesses with strong market positions and remain committed to driving top and bottom line growth. We have made a good start to the year, continuing to push hard for profitable growth while maintaining underwriting discipline and, as it stands today, we expect to achieve a combined operating ratio for 2010 of around 95%. The 7% increase in the final dividend to 5.33p (2008: 4.98p) reflects our positive outlook for the Group.”

For further information:

Analysts
Claire Cordell
Tel: +44 (0) 20 7111 7212
Mobile: +44 (0) 7834 944 204

Suzannah Oliver
Tel: +44 (0) 20 7111 7140
Mobile: +44 (0) 7827 843 749

Press
Louise Shield
Tel: +44 (0) 20 7111 7047
Mobile: +44 (0) 7786 114 662

Simon Kutner
Tel: +44 (0) 20 7111 7327
Mobile: +44 (0) 7795 445 656
 
Faeth Birch (Finsbury)
Tel: +44 (0) 20 7251 3801
Mobile: +44 (0) 7768 943 717