More Than owner RSA warns of uncertainty over car insurance

INSURER RSA yesterday warned that the UK car insurance market remains “very uncertain”, as firms wait to see whether new rules designed to reduce spurious claims are successful.

“Some of the benefits have been pre-empted by price reductions,” RSA chief executive Simon Lee told City A.M. “Depending on how effective the reforms are, this will affect pricing in the coming months. It’s broadly neutral from our perspective.”

The FTSE 100 chief executive also admitted that the decision to slash RSA’s dividend in February surprised some investors but said it was a case of doing “what was right”.

The firm, which owns the More Than brand, yesterday hit its half-year targets, despite a £48m payout relating to Canadian floods. Pre-tax profits grew 14 per cent to £250m.