RSA Releases 1Q Management Statement

RSA Insurance Group RSA released its first-quarter interim management statement, which contained a limited amount of information about its progress so far this year. Reported written premium growth was 7% across the group, due to a combination of acquired premiums and the positive impact of rate gains due to the improving insurance pricing market. The strength was driven, in particular, by growth in emerging markets and Canada, where written premiums were up 16% and 18%, respectively. While the firm did not give an update on its profitability year to date, it did comment that it is confident in delivering a combined ratio of better than 95% and a return on equity of 10%-12% for 2012. We will maintain our fair value estimate and moat rating.