Net written premiums in Canada down 4% in Q1 2015: RSA Group

Net written premiums in Canada were down 4% to 214 million pounds (£) for the first quarter of 2015 compared to the same quarter last year, RSA Group said on Thursday.

Personal premiums in Canada were flat, with a 5% reduction in Motor offset by growth of 11% in Household, RSA said in a statement, noting that Motor premiums were primarily driven by the government mandated rate reductions in Ontario. In Commercial, premiums were down 20% during the first quarter, “largely expected as our 2014 portfolio actions roll through the book,” the statement said.

“In Canada, conditions are mixed with market hardening in personal household offset by weaker conditions elsewhere,” RSA said. “Despite this we anticipate that Canada will show overall growth for the full year 2015.”

Regarding weather losses, as of the end of Q1, total weather costs for the year-to-date were £48 million, which represents 2.6% of net earned premiums (Q1 2014: 5.7%). While weather was relatively benign in the UK, Ireland and Scandinavia, “in Canada, adverse winter weather has resulted in elevated weather costs (albeit lower than Q1 2014), whilst in Latin America, severe flooding in the north of Chile in March resulted in an estimated net cost of c.£14 million,” the statement said. [click image below to enlarge]

RSA Group reported also reported that Core Group premium is up 1% from Q1 2014 to £1.5 billion. The underlying loss ratio for Q1 2015 was better than Q1 2014 “driven by the UK, Canada and Latin America, with Scandinavia marginally weaker. The underlying loss ratio was slightly behind our plan overall, with the UK and Latin America better than plan, and Scandinavia and Canada behind plan.”

Stephen Hester, RSA Group chief executive, concluded in the statement that “premium income returned to modest growth. Operating profit and underwriting performance were up on Q1 2014, though variable across different parts of the Group as can be expected in any single quarter.”