RSA unfazed by Canada floods, unstable investments

August 2
9:58 AM 2013

Shares of RSA Insurance Group gained momentum today after stumbling from its 33% dividend slash early this year. The FTSE 100 insurer rebounded even after floods in Canada dampened the company's financial figures.

RSA's insurance claims and expenditures totaled to GBP0.942 per pound in premiums in the past six months. Last year, the firm's claims and expenses amounted to GBP0.954. Despite unstable investment income, RSA was boosted by its increasing bond yields.

According to the company's chief executive officer Simon Lee, RSA is confident that it will achieve a COR (combined operating ratio) of 95% before the year ends. Combined operation ratio represents the costs and claims of revenues of the company.

"Assuming a normal pattern of weather losses in the second half we remain on track to meet our full year expectations," said the firm, noting that floods in Toronto will impact the company's second semester performance.

RSA announced a GBP0.228 interim dividend payout, less than the past year's GBP0.341.

© 2022 VCPOST, All rights reserved. Do not reproduce without permission.


Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics