The FTSE 100-listed firm posted a 15% fall in its operating profit for the six months to 30 June 2018 to £304mln, own from £360mln, with the costs from adverse weather in the period £53mln in excess of the five-year average RSA Insurance PLC () saw the severe winter weather earlier this year hit its first-half operating profits, while net written premiums also fell. The FTSE 100-listed firm posted a 15% fall in its operating profit for the six months to 30 June 2018 to £304mln, own from £360mln, with the costs from adverse weather in the period £53mln in excess of the five-year average. The group saw its underwriting profit fall 23% to £171mln, while net written premiums down by 5% to £3.2bn on a constant currency basis, and its combined ratio weakened to 94.7%, down from 93.2% in 2017. RSA said group weather costs were £155mln in the first half, or 4.9% of net earned premiums, with Canada the most affected region with a weather ratio of 10%, twice the annual average. The company said, in the UK & Ireland, Storms Eleanor and Emma – the latter known as the 'Beast from the East' – cost it an estimated £47mln pre-tax. RSA chief executive Stephen Hester said: “First half underwriting results were below our ambitions due to adverse weather costs. “On an underlying basis we showed areas of excellent performance, however, and with much we can continue to improve." He added: "We enter the second half of 2018 with confidence, while mindful of market challenges." The firm increased its interim dividend by 11% to 7.3p a share, up from 6.6p a year earlier. In early morning trading, RSA shares were 0.7% lower at 637.2p.
First-half profits at RSA Insurance fell by 15% to £304m ($390m) from £360m the year before. RSA blamed the fall on a drop in net written premiums alongside additional costs deriving from adverse weather in the UK and Canada, with the latter pushing up costs to £53m above the five-year average. The company said it was "disappointed" that its results were lower than expected but added that there had been "a significant improvement across all business segments" since last year. 47m in pre-tax profits.