Royal & SunAlliance reports strong results

Royal & SunAlliance started the 2006 year off strong with a combined operating ratio (COR) for the core Group of 91.6% and 95.8% for the Canadian operation, which represents almost a three-point improvement over Q1 2005.In addition Royal & SunAlliance Canada saw an increase in its underwriting profit of 50% to $18 million. While its net written premiums increased in Q1 2006 by 11%, reaching $287 million. The Company says this spike was driven by a retention rate of 87% and profitable growth in both commercial and personal insurance. In Canada, Royal & SunAlliance also reports an increase of 50% in new business from newly appointed brokers since 2004. Royal & SunAlliance Canada has subsequently appointed another 29 brokers in the Q1 2006. The Core group has also enjoyed increases in its operating result from $95 million (47 million) in Q1 2005 to $418 million (207 million) in Q1 2006.This result, Royal & SunAlliance, notes is underpinned by underwriting discipline, claims management and a focus on operational excellence. Profit after tax for the Company was $246 million (122 million), a figure that is in line with the results from 2005 which included a one-off benefit from the sale of the Company’s Japanese business. In addition, Royal & SunAlliance says it has delivered $505 million (250 million) against its targeted expense savings. In addition, the Company’s Core Group underwriting result is up 13% to $143 million (71m).