RSA reports level of gross premiums up

INSURANCE COMPANY RSA increased the level of gross premiums it wrote in the Irish market last year, boosted by the acquisition of Irish online insurance company 123.ie during the year.

Accounts filed for RSA Insurance Ireland Limited show that 123.ie, whose main shareholders were Derek Richardson and Andrew Collins, was acquired for €82.9 million last year, significantly more than the €65 million price-tag initially announced. This reflected additional payments related to earn-out, goodwill, brand activity and other factors, according to RSA.

Accounts for RSA Ireland for the year ended December 31st 2010, show that the level of gross premiums written increased by 12 per cent in 2010 to €437.4 million, compared to €391.2 million in 2009.

Approximately 43 per cent of premiums written were for fire and property, while 32 per cent related to motor insurance.

The gross amount paid out on claims, net of reinsurance, was €325.2 million, compared to €264.1 million in 2009. According to the accounts, the effect of the storms in November 2010 and snow in December 2010 are reflected in the underwriting result of €9 million, compared to €37.5 million in 2009.

The company made a pretax profit of €8.6 million, down from €45.6 million, reflecting a €15 million unrealised loss on investments and €21 million in investment income.

RSA is the second-largest insurer in Ireland, with 12.3 per cent of the market. A spokesman for the company said yesterday it expects to increase its market share to 15.5 per cent in 2011.

An insight into its 2011 performance was provided by a third quarter trading update from London-listed parent company RSA Insurance Group plc earlier this month, which noted that growth had been driven in part by a strong performance from Ireland, as well as other countries.

Premiums in Ireland grew by 22 per cent in the first nine months of the year to €315 million.