Future uncertain, but RBS Insurance turns a record profit
Royal Bank of Scotland (RBS) Insurance illustrated continued viability last week, turning a 15% operating profit despite the parent company recording the worst result in UK corporate history.
RBS last week revealed a £24.1 billion ($53.4 billion) annual loss in a disastrous year that culminated in a £20 million ($44.3 billion) government bailout to ensure the bank’s survival.
Despite the woes of its parent, RBS Insurance returned operating profit of £780 million ($1.7 billion) against £681 million ($1.5 billion) in 2007. While insurance premium income remained flat at £4.89 billion ($10.83 billion), the company was a beneficiary of a relatively quiet claims period, with claim costs falling 7%.
The company confirmed it is no longer interested in offloading the UK’s leading personal lines insurance business.
“The business plans to pursue additional growth through building its position in the online insurance aggregator channel, through the bank channels and in the commercial market,” a spokesman said.
RBS last week revealed a £24.1 billion ($53.4 billion) annual loss in a disastrous year that culminated in a £20 million ($44.3 billion) government bailout to ensure the bank’s survival.
Despite the woes of its parent, RBS Insurance returned operating profit of £780 million ($1.7 billion) against £681 million ($1.5 billion) in 2007. While insurance premium income remained flat at £4.89 billion ($10.83 billion), the company was a beneficiary of a relatively quiet claims period, with claim costs falling 7%.
The company confirmed it is no longer interested in offloading the UK’s leading personal lines insurance business.
“The business plans to pursue additional growth through building its position in the online insurance aggregator channel, through the bank channels and in the commercial market,” a spokesman said.