RSA Insurance Group plc
(trading as RSA)

Type	Public limited company
Traded as	LSE: RSA
Industry	Insurance
Founded	1996 (London)
Headquarters	London, United Kingdom
Key people	John Napier (Chairman) Simon Lee (CEO)
Revenue	£8,735 million (2011)[1]
Operating income	£738 million (2011)[1]
Net income	£427 million (2011)[1]
Employees	21,000 (2010)[2]
Website	www.rsagroup.com

RSA Insurance Group plc (trading as RSA, formerly Royal and Sun Alliance) (LSE: RSA) is a multinational general insurance company headquartered in London, United Kingdom. It has over 20 million customers in 36 countries across Asia, Europe, North America and South America.^[2] It was formed by the merger of Sun Alliance and Royal Insurance in 1996.

RSA is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

History[link]

• 

  Royal Insurance war memorial, now relocated to the National Memorial Arboretum
• 

  Sun fire insurance plaque on display at Bedford Museum
• 

  Alliance fire insurance plaque in Bedford Museum
• 

  Royal Insurance logo used in Canada, 1857
• Royal and Sun Alliance logo.svg

  Royal and Sun Alliance logo, 1996-2008

RSA was formed following the merger of Sun Alliance and Royal Insurance in 1996.^[3] Sun Alliance was itself a product of the merger in 1959 of The Sun, which was founded in 1710, with The Alliance, which was founded in 1824 by Nathan Mayer Rothschild and Moses Montefiore.^[4] Sun Alliance went on to acquire London Assurance in 1965 (becoming Sun Alliance & London)^[4] and Phoenix Assurance in 1984.^[5]

Royal Insurance was founded in 1845.^[4] It acquired Liverpool & London and Globe Insurance Company in 1919.^[4] The company formally changed its name from Royal & Sun Alliance Insurance Group plc to RSA Insurance Group on 20 May 2008.^[6]

In March 2009, RSA announced plans for the shedding of 1,200 jobs from its UK operations, a reduction of around 15%.^[7]

Operations[link]

RSA provides insurance products and services to over 20 million policyholders.^[8] It has the ability to write business in 130 countries and has direct operations in 27 countries.

RSA is the second-largest general insurer in the United Kingdom. Its global headquarters are in the City of London on Fenchurch Street and the headquarters of its UK operations are on Leadenhall Street. Its registered office is in St Mark's Court, Horsham. Other key UK offices are located in Liverpool, Bristol, Manchester, Chelmsford, Glasgow, Cardiff, Sunderland, Belfast, Peterborough, Halifax, Croydon, Stirling and Birmingham. RSA, including its More Th>n brand, announced itself to be the first carbon neutral insurance company in the UK on 2 December 2006.^[9]

RSA owns the More Than direct car, home, pet and travel insurance brand in the United Kingdom, recognised widely for its former Lucky The Dog advertisements and its "MORE IS ..." campaign. More Th>n also sells van, business car, shops and offices and business insurance through its More Than Business operation.^[10]

Offices[link]

Controversies[link]

Asbestos liabilities[link]

In January 2002 Royal & Sun Alliance became involved in litigation over claims for injury arising from asbestosis among workers in Clyde shipyards. The workers alleged that between 1972–1977 R&SA had issued insurance certificates to asbestos manufacturer Turner & Newall but excluded cover for asbestosis, in breach of the Employers' Liability (Compulsory Insurance) Act 1969. R&SA responded that asbestos-related injury was excluded from the policy because it was a risk the company was not willing to underwrite, that Turner & Newall was instead self-insured against asbestosis and should therefore be responsible for any compensation.^[11]

In February 2002 R&SA set aside £384 million to double its reserves available for asbestos claims which, combined with claims of £215 million arising from the 11 September attacks, wiped out its 2001 profits.^[12][13] R&SA put up seven of its subsidiaries for sale in an attempt to raise a further £800 million to cover liabilities for asbestos insurance claims in the United States.^[14] Friends Ivory & Sime subsequently acquired R&SA's UK asset management subsidiary in May 2002 for £240 million.^[14] The situation was further compounded by R&SA having to reserve £1.2 billion against liabilities for guaranteed annuities, the product which caused the collapse of Equitable Life, and was also facing a fine from the Financial Services Authority for failure to meet the deadline in the pension mis-selling review.^[15] Two months later Friends Provident acquired R&SA's offshore life unit International Financial Services Limited, based on the Isle of Man, for £133 million.^[16] In July 2002 R&SA sold its group risk business to Canada Life for £60 million.^[17] R&SA was forced to close its life business, with the loss of 1,200 jobs, in August 2002.^[18]

In November 2002 Turner & Newall launched a suit against R&SA on behalf of former employees who had suffered asbestos-related disease, claiming that the insurer was liable because it provided employer liability policies to the engineering firm.^[19] In an effort to reduce costs, R&SA chairman Sir Patrick Gillam said it would sell its US business RSUI and "float most of its Asia Pacific operations", bringing total job losses in the UK to 4000.^[20] The case was heard at the High Court of Justice in January 2003.^[21] R&SA argued that a policy clause which excluded cover for pneumoconiosis also excluded other asbestos-related disease such as asbestosis and peritoneal mesothelioma. Colin Edelman QC, representing T&N, told Mr Justice Lawrence Collins that the defence which R&SA had the "temerity" to put forward was "just ridiculous" and that the insurer was trying to "wriggle out of its liability."^[22] On 9 May 2003 the court ruled that R&SA was liable for the compensation claims.^[23] In September 2003 R&SA cut 1,000 jobs in the UK and asked shareholders for £960 million to cover further asbestos claims.^[24]

Inflated repair costs[link]

In September 2011, Judge Platt of the Romford County Court in his judgement attacked the method in which RSA recovered their costs by putting a subsidiary within the motor claims process to inflate profits. Several insurers are now refusing to pay RSA's requests for payment without sight of the original invoice.^[25]

References[link]

External links[link]

Companies portal

• RSA Insurance Group

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