RSA insurance has posted a drop in their annual profits as a result of weather-related challenges.
RSA missed analyst’s forecasts, as profit dropped £517m by 19% in 2018, underwriting profit fell to £250m by 33% due to commercial insurance business losses, mainly the London market unit.
Pre-tax profit increased £480m by 7%. Shares fell 3.4% over the news to 508.6p.
Stephen Hester, chief executive said, “In 2018 RSA increased headline profits and dividends with a still attractive return on capital. At an underlying level however, the results represent RSA’s first down year since 2013.
“Much went well in 2018, with excellent results in many of RSA’s personal lines businesses and good progress on expenses and other strategic initiatives.
“However, adverse weather costs and challenging commercial lines results exposed us to more volatility than expected.
“This was most intense in the London Market business, which accounted for substantially all our under-performance in the second half.”