Royal & SunAlliance reports strong 2005 results (March 09, 2006)

Royal & SunAlliance in Canada has reported that its 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 CDN$1.5 billion (698 million), up CDN$968 million (440 million) on the prior year. The underwriting profit, CDN$260 million (118 million), is up CDN$869 million (395 million) over 2004. “The Group has realized savings of CDN$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 CDN$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 CDN$1.3 billion compared to CDN$1.2 billion in 2004. Personal insurance delivered an underwriting result of CDN$40 million, compared to CDN$33 million a year earlier. Commercial insurance delivered an underwriting profit of CDN$18 million, compared to CDN$12 million in the prior year.