RBS 2009 Annual Report Download - page 102

RBS Group Annual Report and Accounts 2009100
RBS Insurance 2009 2008
£m £m
Earned premiums 4,519 4,512
Reinsurers’ share (165) (206)
Insurance net premium income 4,354 4,306
Net fees and commissions (366) (396)
Other income 472 520
Total income 4,460 4,430
Direct expenses
– staff (267) (286)
– other (222) (225)
Indirect expenses (270) (261)
(759) (772)
Gross claims (3,690) (3,136)
Reinsurers’ share 55 104
Net claims (3,635) (3,032)
Operating profit before impairment losses 66 626
Impairment losses (8) (42)
Operating profit 58 584
Analysis of income by product
Motor own-brand 2,005 1,942
Household and Life own-brands 849 806
Motor partnerships and broker 577 686
Household and Life, partnerships and broker 330 354
Other (international, commercial and central) 699 642
Total income 4,460 4,430
Performance ratios
Return on equity (1) 1.6% 18.3%
Cost:income ratio 17.0% 17.4%
Adjusted cost:income ratio (2) 92.0% 55.2%
In-force policies (000’s)
– Motor own-brand 4,858 4,492
– Own-brand non-motor (home, rescue, pet, HR24) 6,307 5,560
– Partnerships and broker (motor, home, rescue, pet, HR24) 5,328 5,898
– Other (International, commercial and central) 1,217 1,206
General insurance reserves – total (£m) 7,030 6,672
Notes:
(1) Based on divisional operating profit after tax, divided by divisional notional equity (based on regulatory capital).
(2) Based on total income and operating expenses above and after netting insurance claims against income.
Business review continued