RSA is withdrawing from three of its London market business lines as part of a restructure of its specialty and wholesale business.
The insurer will stop writing business in the international construction, international freight, and fixed-price marine protection and indemnity insurance classes, saying these were unlikely to meet RSA’s profitability requirements in the foreseeable future.
Also, the group will merge its international marine cargo and international marine transportation into one unit, under new leadership.
RSA is restructuring the business, which is part of RSA Global Risk Solutions, in order to cut exposure and concentrate its efforts on areas where it feels most confident it can deliver profitable growth.
It comes after RSA’s London and UK division saw third-quarter losses of £70m at a combined ratio of 110%, with its marine portfolio hit hardest.
Following the restructure, the group’s London market business will consist of four specialisms, namely international cargo and transportation, international hull, international property, and international engineering and renewable energy risks.
Consequently, it is estimated that RSA’s written premium in the London market will reduce by around a third from 2018 to 2019.
Steve Lewis, pictured, CEO of RSA UK & International, said: “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 Global Risk Solutions, said: “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.”
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