RSA Europe boss ponders future of Gerling tie-up

The insurers currently have a formal relationship as part of a 'strategic network' that sees the UK company service business on behalf of the German giant in territories where it is not represented but RSA is, and vice versa.

RSA is on track to double its net income in just two years by recording £130m net written premium in 2010. Director of Europe Chris Smith told Post: "People question how we are growing so quickly. Although we get plaudits for this expansion, we also constantly get asked how we are doing it, and whether we are going to fall over? Brokers are much sharper on service than they used to be. So if you ask me whether we are getting the documents out, I would say it is a challenge, but we are continuing to service brokers."

Speaking at the Federation of European Risk Management Associations conference last week, he added: "HDI Gerling is both a competitor and a partner, which is challenging at the moment, especially in Germany. But we know them well and we have made it work for 10 years.

"[The network] is one of our major differentiators, and in Germany everyone knows that HDI Gerling uses RSA, but I can't work out why we chose to give away our brand, admittedly for a fee, to one of our major competitors. As we are growing, it is starting to cause some friction as it works for them, but I am not so sure it works for us."

Mr Smith also told Post RSA is planning to replicate its German structure and open more offices in the other five territories it operates in. Germany is the only European country where it has representation in more than one location" Cologne, Hamburg and Munich.

"In France we are looking to Lyon and, as we grow, we would probably look to Barcelona in Spain, Rotterdam in Holland, Ghent in Belgium and Milan in Italy," he commented. Currently it is based in Paris, Madrid, Amsterdam, Brussels and Rome.

Mr Smith also said RSA is looking to further broaden its property footprint, potentially move into professional classes next year and commercial motor further down the line. He concluded that RSA Europe will have 197 staff by the end of the year, with a budget to employ more in 2010.