American Depositary Receipts The Company operates a sponsored American Depositary Receipts (‘ADR’) programme which is managed by JPMorgan Chase NA. The programme allows shareholders to invest in the Company through US dollar denominated funds. One ADR represents one Ordinary Share of £1.00 each.
Corporate Sponsored Nominee (CSN) The RSA CSN is an easy and convenient way for you to hold and manage your RSA shares electronically, so there is no need for a paper certificate. You are still the beneficial owner of the shares and you can instruct the nominee to buy, sell or transfer your holding on your behalf.
Shareholders participating in this service continue to receive dividend payments and annual reports and can attend and vote at RSA’s general meetings. The service is administered by Equiniti Financial Services Limited, part of the same group of companies as our Registrar, Equiniti.
If you would like to join, please call Equiniti on 0371 384 2048 to obtain an application form today or visit www.shareview.co.uk/info/csn for more information, including the CSN terms and conditions. Lines are open 8:30am to 5:30pm (UK time), Monday to Friday, excluding public holidays in England and Wales.
Low cost share dealing facilities Shareholders may purchase or sell their RSA Ordinary Shares through their stockbroker, a high street bank or one of the providers detailed below: Equiniti offers a telephone and internet dealing service. Commission is 1.5 percent (rate quoted as at 21 February 2018 and may be subject to change) on amounts up to £50,000 and 0.25 percent on the excess thereafter, with a minimum charge of £60 for telephone dealing and £45 for internet dealing. For telephone sales, call +44(0) 345 6037 037. Lines are open 8.30am to 5.30pm (UK time), Monday to Friday, excluding public holidays in England and Wales. For internet sales log on to www.shareview.co.uk/dealing. Please quote your shareholder reference number.
Stocktrade offers an online dealing service. An account can be opened by visiting www.alliancetrustsavings.co.uk, applying for an account which enable to buy, sell or transfer. Alternatively call + 44 (0) 13 8257 3737 for more detailed information on commission charges and their full terms and conditions.
• Keep any documentation that contains your shareholder reference number in a safe place and destroy any documentation you no longer require by shredding
Payment date for the ordinary final dividend for 2017 9 August 2018* Announcement of the half-year results for the six months ended 30 June 2018 16 August 2018* Ex-dividend date for the second preference dividend for 2018 17 August 2018* Record date for the second preference dividend for 2018 6 September 2018* Ex-dividend date for the ordinary interim dividend for 2018 7 September 2018* Record date for the ordinary interim dividend for 2018 1 October 2018* Payment date for the second preference dividend for 2018 12 October 2018* Payment date of the ordinary interim dividend for 2018 1 November 2018* Q3 Trading Update *provisional date
This is the underlying loss ratio (net incurred claims and claims handling expense as a proportion of net earned premium) of our business prior to volatile impacts from weather, large losses and prior-year reserve developments.
Percentage of net earned premiums that is paid out in claims and claims handling expenses.
A provision established to cover the estimated cost of claims payments and claims handling expenses that are still to be settled and incurred in respect of insurance cover provided to policyholders up to the reporting date.
A measure of underwriting performance calculated on an ‘earned’ basis as follows: COR = loss ratio + commission ratio + expense ratio, where Loss ratio = net incurred claims / net earned premiums Commission ratio = commissions / net earned premiums Expense ratio = operating expenses / net earned premiums * 1 Y
Prior period comparative retranslated at current period exchange rates. 4 N/a
A measure of operating expenses incurred by the Group in undertaking business activities, predominantly underwriting and policy acquisition costs, excluding commission and premium related costs such as levies. They are adjusted to include claims handling costs that are reported within net claims incurred.
Expense Ratio Underwriting and policy expenses expressed as a percentage of net earned premium. 1 X
Exposure A measurement of risk we are exposed to through the premiums we have written. For example, in motor insurance one vehicle insured for one year is one unit of exposure.
Interest Costs Interest costs represent the cost of Group debt excluding any debt buy back costs. 1 O
Large Loss Ratio The large loss ratio is an expression of claims incurred in the period with a net cost of £500k or higher as a percentage of net earned premium over the same period.
Net asset value per share is calculated as closing shareholders’ funds, less preference share capital, divided by the number of shares in issue at the end of the period.
The total claims cost incurred in the period less any share that is borne by reinsurers. It includes both claims payments and movements in claims reserves and claims handling expenses in the period.
Costs that are dependent on the level of defined benefit pension scheme plan funding and arise from servicing past pension commitments
Debt buy back costs To allow meaningful assessment of ongoing finance costs
Operating Profit Operating profit is profit before tax less non-operating charges. 1 AC
Profit attributable to ordinary shareholders (profit after tax excluding non-controlling interests, coupon on tier 1 notes and preference dividend) expressed in relation to opening tangible net asset value.
Tangible net asset value, divided by the number of shares in issue at the end of the period.
Underlying profit after tax expressed in relation to opening shareholders funds excluding preference share capital.
Underlying profit after tax expressed in relation to opening tangible net asset value.
Underlying Tax Rate The underlying Core Group tax rate mainly comprising the local statutory tax rates in the Group’s territories applied to underlying regional profits (operating profits less interest costs).
Income Gross written premiums 7,599 – 7,599 7,599 Less: reinsurance premiums (921) – (921) (921) Net written premiums 6,678 – 6,678 6,678 Change in gross provision for unearned premiums (16) – (16) (16) Less: change in provision for unearned reinsurance premiums (57) – (57) (57) Change in provision for unearned premiums (73) – (73) (73) Net earned premiums, analysed as 6,605 – 6,605 A 6,605
Amortisation of intangible assets (15) (15) (15) Pension net interest and administration costs (7) (7) (7)
Foreign exchange losses (1) (1) (1) Impairment of intangibles (23) (23) (23) Other operating expenses (234) – (234)
Acquisitions and disposals 69 – 69 69 Net share of profit after tax of associates 1 – 1 1 Profit/(loss) before tax 448 – 448 394 284 (15) 663 (215) 448 Income tax expense (126) – (126) Z AA AB AC AD Profit/(loss) for the year 322 – 322
6,528 Investment income 355 14 369 D 369 Realised gains on investments 28 2 30 30 Gains/(losses) on exchange derivatives (41) (41) (41) Unrealised gains/(losses) (3) (3) (3) Impairments 8 8 8 Net investment return 347 16 363 Other insurance income 133 133 E 133 Other non-insurance income 5 5 5 Foreign exchange gain 32 32 32 Other operating income 170 – 170 Total income 6,857 204 7,061 Expenses
Solvency II costs (7) (7) (7) Economic assumption changes (1) (1) (1) * Other operating expenses (229) (7) (236)
Attritional loss ratio G / B R 55.2% Weather loss ratio H / B S 2.5% Large loss ratio I / B T 8.9% Prior year loss ratio V–R–S–T U (2.0%) Loss ratio F/A V 64.6% Commission ratio (K+L) / A W 14.4% Expense ratio (E+M+N) / A X 15.2% Combined operating ratio V + W + X Y 94.2%
B Underlying profit after tax attributable to ordinary shareholders 444 402
E Weighted average no. share issue during the period (un-diluted) 1,021 1,018
B/E K Underlying earnings per share 43.5 39.5 3. Balance sheet reconciliations £m £m
Jargon Buster & Alternative Performance Measures continued 4. Net written premium movement and constant exchange 2017 £m 2016 £m
Comprised of: Volume change including portfolio actions and reinsurance (25) (137)
Both manufacturing mill and the printer are registered to the Environmental Management System ISO4001 and are Forest Stewardship Council® (FSC) chain of custody certified.