Royal & SunAlliance reports strong 2005 results (April 01, 2006)

Royal & SunAlliance Canada’s 2005 combined operating ratio (COR) is the best in history, at 94.8%. Overall, the Royal & SunAlliance Group delivered a strong year-end result with a COR of 93.8% for ongoing businesses, compared to 93.8% in 2004. The Group operating result is CD$1.5 billion (698 million), up CD$968 million (440 million) on the prior year. The underwriting profit, CD$260 million (118 million), is up CD$869 million (395 million) over 2004.

“The Group has realized savings of CD$528 million (240 million) in annualized expense saving from the change program,” Royal & SunAlliance announced in a press release. “These results are underpinned by the Group’s commitment to operational excellence and a disciplined approach to underwriting, claims and expense management.”

In Canada, Royal & SunAlliance reported a 27% increase in its underwriting profit to CD$57 million, which the company said reflected “the actions we’ve taken to improve the quality of our book, and our focus on operational excellence.” Net written premiums in Canada were CD$1.3 billion compared to CD$1.2 billion in 2004.

Personal insurance delivered an underwriting result of CD$40 million, compared to CD$33 million a year earlier. Commercial insurance delivered an underwriting profit of CD$18 million, compared to CD$12 million in the prior year.