End in sight for RSA as Hester’s turnaround plan nears deadline

Caitlin Morrison
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Ex-RBS boss Hester said the group aims to finish most of the restructure by the end of 2015
STEPHEN Hester, credited with bringing RBS back from the brink of collapse, is continuing to make similar progress in turning insurance group RSA around.

Shares in the firm went up by 2.2 per cent yesterday to 427.3p after it reported a one per cent increase in core premium income during the three months to 31 March.

Meanwhile, the firm said profits were “ahead of plan”.

RSA said its action plan, which was triggered by a crisis in its Irish business in late 2013, was making good progress.

Yesterday RSA posted a five per cent dip in net written premiums in its Irish arm, attributed to “the ongoing impact of our remediation work”.

Hester said that despite challenges in the form of lower interest rates, currency moves in key territories, and competitive insurance markets, the company was planning to have completed most of its restructuring by the start of 2016. “Our focus on that goal is clear,” he said.