RSA has announced that it will cut its premiums written through the London market by around a third following a review and restructure of its specialty and wholesale business.
As part of the restructure, the UK carrier revealed that it would be exiting three lines of business with immediate effect or at contract expiry, namely international construction, international freight and fixed price marine protection and indemnity insurance, explaining that these lines are “unlikely to satisfy the Group’s profitability requirements in the foreseeable future.”
Meanwhile, RSA’s London market portfolios in international marine cargo and international marine transportation will be restructured into one unit under new leadership, with exposures in both areas significantly reducing as the company focuses on targeted areas where sustained profitability can be achieved.
RSA’s London market business, which is reported as part of RSA’s UK and International region, will now focus on four key specialisms; international hull, international cargo and transportation, international property, and international engineering and renewable energy risks.
The carrier said that these core portfolios, whilst subject to rigorous and selective underwriting, will allow it to concentrate on areas of existing strength and establish a platform for profitable growth in the future.
RSA said the plans to restructure its specialty and wholesale business, which forms part of its global risk solutions (GRS) unit, was part of an ongoing review to streamline the group’s international exposure, improving underwriting, pricing accuracy and risk management.
It said that combined, these actions are expected to reduce its premiums written through the London market by around one third in 2019 versus the prior year.
Steve Lewis, chief executive of RSA UK & International, commented: “RSA has historically served the London international specialty and wholesale market across a broad range of products and exposures.
“The changes we are making to our portfolio will enable us to take a much more targeted approach, focusing our efforts on specialist areas where we have market leading expertise and capacity. We will continue to evolve and build on this strategy over time in order to deliver sustained value for our customers and shareholders alike.”
Tony Buckle, managing director of RSA GRS, added: “As a specialist insurer to the London market, RSA will offer distinctive, best-in-class propositions to our customers in the segments on which we are focused. This will enable us to develop and sharpen our expertise and manage our exposures and volatility more effectively. We will be working closely with our customers and their brokers to assist them in a smooth transition.”