Premiums up 16% at RSA's Irish unit

PREMIUMS AT RSA Insurance's Irish operations grew by 16 per cent last year to £353 million (€416 million) as a result of the insurer's acquisition of online company 123.ie, which offset volume reductions in other lines.

123.ie, which was acquired by RSA in 2010, generated premiums of £81 million for the company last year. RSA also implemented rating actions across household and personal motor insurance, increasing both by 6 per cent.

The cost of last year’s floods was £24 million, the results show.

The company expects its Irish operations “to create strong value” in 2012.

Meanwhile, life and pensions company Zurich Life Ireland yesterday reported a drop in new business last year. The company saw its total new Irish business, as measured by annual premium equivalent (APE), decline by 16 per cent to €165 million.

Excluding investment-only business, new business APE fell 14 per cent to €153.6 million.

Life assurance new business was down 4 per cent at €37 million, while pensions saw a drop of 16 per cent to €116.6 million.

Zurich Life had a new business margin of 2.3 per cent of present value of premiums.

Zurich Life, which is headquartered in Blackrock, Co Dublin, employs around 1,000 people in Ireland.

Anthony Brennan, chief executive of Zurich Life Ireland, said that the company maintained profitability and retained its core market share during the year.

“2011 was another tough year for the life industry in Ireland with aggressive competition for all business,” he said.