RSA limits losses and boosts income

HOME insurer Royal and Sun Alliance (RSA) reassured investors yesterday with solid quarterly numbers that moved on from heavy winter losses in the UK and Europe.

RSA’s net written premiums rose eight per cent to £2.1bn in the three months to March from 2010 as rates rose and it felt the benefit of takeovers in Canada and Ireland.

A deal with Tesco Pet Insurance also added £36m of net premium income in the quarter, it said in its interim management statement.

Chief executive Andy Haste said it was “a strong start to the year”.

UK premium income rose a better-than-anticipated nine per cent to £760m, while emerging markets income was up 15 per cent.

RSA took a lower-than-expected £25m loss from worldwide catastrophes in the quarter and said it was on track to meet 2011 targets.