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RSA Insurance Group Plc #RSA Announced, in its Q1 2020 trading update, that insurance market conditions were largely unchanged in Q1 with little time for a COVID-19 effect. The markets were competitive overall, although accommodating underwriting actions in those portfolios responding to industry losses. Financial markets were heavily impacted by COVID-19 in March. All asset classes saw impacts broadly associated with increasing risk premiums. Group net written premiums of £1,521 million were down 1% ex. exits vs Q1 2019 (down 2% inc. exits) and in line with our plans - areas of profitable growth were offset by planned underwriting effects in portfolios being remediated, with this process nearing its conclusion. The group business operating profit for Q1 was up by double digit percentages, both including and excluding exit portfolios, with an improved combined ratio and slightly lower investment income (as guided). Tangible net asset value per share was 305p (31 December 2019: 282p). Financial market movements will continue to impact balance sheet, solvency ratios, pension surplus and investment income. As at end April the Solvency II ratio had recovered slightly, and was estimated at 153% (161% excluding dividend accrual). The investment income outlook is lower but still within the ranges guided for 2020.
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