€415m sales boost RSA challenge
Published 24/02/2012 | 05:00
RSA is challenging Aviva for the top spot in the Irish general insurance market after growing sales by 16pc to more than €415m last year following its acquisition of 123.ie.
The sizable growth puts RSA within a whisker of market leader Aviva, which has yet to report its results for 2012, but the company recently cited the challenging market conditions as a reason for cutting about 1,000 jobs.
The figures also suggest that RSA has defied industry expectations by maintaining, and possibly growing, premiums at 123.ie, the online broker that it snapped up for €65m in late 2010.
123.ie contributed £81m (€91m) in new business, which "offset" a reduction in sales across other parts of RSA. The €91m is well above the €60m sales 123.ie had in the year to March 2010 before RSA took over.
Many thought RSA would struggle to retain 123.ie's customers since the online site's prices were well below what RSA itself would have been charging.
The figures also shows RSA managed to maintain profitability as it grew, despite a €28m hit from November's exceptional flooding.