ROYAL & Sun Alliance, the insurer that operates the More Than brand, has reported an 8 per cent rise in first-quarter personal insurance business on the back of premium increases for motor and household insurance cover.
The group, which is changing its name to RSA later this month, said it had seen personal insurance premiums increase to £265 million, thanks largely to its More Than subsidiary.
RSA said premium rates had increased by 5 per cent for personal motor
insurance and by 4 per cent for household cover, but said customers chose to stay with the group despite the higher renewal costs with a retention rate of more than 80 per cent.
It added that partnerships with corporate clients to provide "white label" insurance products had also contributed to the premium growth, with total UK net premiums up 3 per cent to £661m in the first three months of the year.
The premium rate rises come after RSA was hit by £120m in claims from last summer's UK floods, although the costs failed to prevent it from posting a 4 per cent rise in 2007 full-year profits.
RSA yesterday said it had "taken the right action" with rates, despite tough competition in the UK market.
• UK insurers are due to face soaring claims costs, according to a report out yesterday, which said rising personal injury claims look set to push up motor insurers' claims costs by 28 per cent to £10.9 billion during the coming five years.
The full article contains 257 words and appears in The Scotsman newspaper.
