3 May 2012 – trading statement

An encouraging trading statement from insurance group RSA for the first quarter of the year should help to at least underpin the share price at current levels.  Net written premiums rose by 5% with all regions delivering good growth, with emerging markets, notably Latin America, producing an excellent performance.  At the end of March, the group’s investment portfolio totalled £14.4bn with only 1% of this, or £139m, invested in peripheral European Government debt.  With the shares yielding around 9% we believe that they remain a BUY.