Nine-month insurance premiums cut by 5% by RSA insurer
RSA Undergoes Large-Scale Restructuring Amidst Business Challenges
UK-based insurance giant RSA is currently undergoing a significant restructuring, as the company navigates through a series of internal and external pressures.
Last year, the company's planned takeover by Zurich Insurance fell through due to problems within Zurich's own business operations [1]. RSA's CEO, Stephen Hester, has expressed hope to announce a deal by the time of the full-year results early next year.
The restructuring plan includes significant deleveraging of the company's capital structure. As of August 2025, RSA is under a court-administered reorganization via Chapter 11 bankruptcy in the U.S. The plan includes agreements to provide $100 million in debtor-in-possession financing during the process and up to $300 million in takeback term loans upon emergence from bankruptcy [1].
RSA's business spans across Ireland, Canada, Scandinavia, and other countries, in addition to Britain. The company reported a 5% drop in net written premiums for the first nine months of the year, with the decline reaching £4.82 billion from £5.09 billion a year earlier.
The Bank of England's August interest rate cut has had a negative impact on RSA's pension liabilities, causing a swing from a small surplus to a deficit of slightly more than £200m. This development has led to a 4.5% drop in tangible equity to £3.179 billion as at September 30, from £3.32 billion at the end of the June quarter.
Despite these challenges, RSA is projected to produce record underwriting profits for the first nine months of 2016. The slide in sterling following Britain's vote to leave the European Union has helped RSA's earnings, as 70% of its operations are overseas.
A key aspect of RSA's restructuring plan is the sale of some overseas businesses and cost-cutting. Hester has expressed being encouraged by interest in RSA's legacy insurance business, mainly old asbestos claims, and the company is planning to sell or reinsure £1 billion of legacy UK business.
However, it's important to note that no explicit updates are found on the completion status of the £1 billion legacy UK business sale. Additionally, no information on cost-cutting targets from the restructuring is evident, and no specific impact of Brexit on the restructuring plan is detailed in the results.
For the latest and more detailed information on these points, it may be necessary to access RSA's own financial communications or recent UK market reports not included in these search results.
[1] - Source: Reuters, August 2025.
In light of the large-scale restructuring at RSA, the company is actively exploring financial avenues, aiming to sell or reinsure £1 billion of its legacy UK business, which forms part of their business operations.
Moreover, the restructuring plan includes a focus on cost-cutting measures within the finance sector of the corporation, as they navigate through the challenging business landscape.
