General insurance company RSA Group has unveiled plans to scale back its London Market exposures following a review into its specialty and wholesale business.
RSA said the restructuring of its specialty and wholesale business is part of an ongoing review to streamline its international exposure, enhancing underwriting, pricing accuracy and risk management.
Reported as part of RSA’s UK and International region, the London Market business of RSA will now focus on international hull, international cargo and transportation, international property, international engineering and renewable energy risks.
The portfolios are subject to selective underwriting and will enable RSA to focus on the areas of present strength and set up a platform for profitable growth in the future.
Following detailed analysis, RSA stated that its international construction, international freight and fixed price marine protection and indemnity insurance business lines are unlikely to meet the group’s profitability needs in the foreseeable future.
As a result, the company took the decision of exiting from the lines of business with immediate effect or at contract expiry.
RSA UK & International CEO Steve Lewis 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.”
Its London Market portfolios in international marine cargo and international marine transportation will also be consolidated into one unit under new leadership. This is expected to reduce its exposures in both areas significantly, as the company focuses on targeted areas where sustained profitability can be achieved.
With these actions, the company expects to reduce its premiums written through the London Market by around one third year on year (2018 vs 2019).
RSA global risk solutions managing director Tony Buckle 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.”