3rd Quarter Results - Section B
November 20 2003 - 2:03AM
UK Regulatory
ROYAL & SUN ALLIANCE INSURANCE GROUP PLC
SECTION B
STATISTICAL ANALYSIS
CONTENTS
Territorial Analysis of General Business Operations
Nine months to 30 September 2003 B 1
Reconciliation of Reserve Strengthening and Discontinued Operations B 2
Third Quarter B 3
United Kingdom General Business Operations
Nine months to 30 September 2003 B 4
Third Quarter B 5
UK Personal General Business Operations Breakdown
Nine months to 30 September 2003 B 6
Third Quarter B 7
Scandinavia General Business Operations
Nine months to 30 September 2003 B 8
Third Quarter B 9
USA General Business Operations
Nine months to 30 September 2003 B 10
Third Quarter B 11
International General Business Operations Breakdown
Nine months to 30 September 2003 B 12
Third quarter B 13
International - Canada General Business Operations
Nine months to 30 September 2003 B 14
Third Quarter B 15
Territorial Analysis of General Business Ongoing Operations
Nine months to 30 September 2003 B 16
United Kingdom General Business Ongoing Operations
Nine months to 30 September 2003 B 17
USA General Business Ongoing Operations
Nine months to 30 September 2003 B 18
International General Business Ongoing Operations
Nine months to 30 September 2003 B 19
Territorial Analysis of Life Business Operations
Life & Pensions B 20
TERRITORIAL ANALYSIS OF GENERAL BUSINESS OPERATIONS
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Written
2003 2002 2002 Currency
Adjusted Original Inc/dec
�m �m �m %
United Kingdom 2,191 2,587 2,587 (15)
Scandinavia 915 801 717 14
USA 1,115 1,361 1,439 (17)
Canada 388 449 403 (13)
International 578 867 811 (33)
Australia & New Zealand 283 624 528 (54)
Group Reinsurance 4 2 2 88
5,474 6,691 6,487 (18)
Less: Quota share portfolio (349) (307) (303)
transfer
5,125 6,384 6,184
Underwriting Result Operating Ratio
2003 2002 2002 2003 2002
Adjusted Original
Accident Years Accident
Year
Current Prior Total Total Total Current Total Total
�m �m �m �m �m % % %
United Kingdom 70 (30) 40 (64) (64) 96.7 98.0 101.8
Scandinavia 14 (17) (3) (49) (44) 96.7 98.7 105.4
USA (39) (536) (575) (124) (130) 100.2 141.1 109.2
Canada - (8) (8) (36) (32) 98.4 100.4 108.6
International 16 14 30 (47) (44) 97.0 94.9 104.7
Australia & New Zealand 16 (3) 13 21 18 94.6 95.7 95.3
Group Reinsurance (7) (20) (27) (1) (1)
70 (600) (530) (300) (297) 97.5 108.1 104.0
Equalisation provision (25) (18) (18)
Reorganisation costs & goodwill (refer (150) (33) (33)
to A6 and A7)
(705) (351) (348)
General
Business
Result
(based on LTIR)
2003 2002
�m �m
United Kingdom 262 212
Scandinavia 67 34
USA (440) 39
Canada 33 10
International 85 40
Australia & New Zealand 35 67
Group Reinsurance (36) (19)
6 383
RECONCILIATION OF RESERVE STRENGTHENING AND DISCONTINUED OPERATIONS
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Written
2003 2002 2002
Ongoing Adjusted Original
Published Discontinued Underlying
NPW NPW NPW Total Total
�m �m �m �m �m
UK personal 878 210 668 1,266 1,266
UK commercial 1,313 7 1,306 1,321 1,321
Scandinavia 915 - 915 801 717
USA 1,115 646 469 1,361 1,439
Canada 388 - 388 449 403
International 578 29 549 867 811
Australia & New 283 283 - 624 528
Zealand
Group Reinsurance 4 - 4 2 2
5,474 1,175 4,299 6,691 6,487
Less: Quota share (349) - (349) (307) (303)
portfolio transfer
5,125 1,175 3,950 6,384 6,184
Underwriting Result
2003 2002 2002
Pre Ongoing Adjusted Original
Published Reserve Strengthening Discontinued Underlying
Result Strengthening Result Result Result Total Total
�m �m �m �m �m �m �m
UK personal (18) 14 (32) (15) (17) (79) (79)
UK commercial 58 (25) 83 (63) 146 15 15
Scandinavia (3) (10) 7 - 7 (49) (44)
USA (575) (458) (117) (112) (5) (124) (130)
Canada (8) (4) (4) - (4) (36) (32)
International 30 (1) 31 - 31 (47) (44)
Australia & New 13 - 13 13 - 21 18
Zealand
Group Reinsurance (27) (16) (11) - (11) (1) (1)
(530) (500) (30) (177) 147 (300) (297)
Equalisation provision (25) - (25) - (25) (18) (18)
Reorganisation costs & (150) - (150) - (150) (33) (33)
goodwill (refer to A6
and A7)
(705) (500) (205) (177) (28) (351) (348)
Operating Ratio
2003 2002
Pre Ongoing Original
Published Reserve Strengthening Discontinued Underlying
Result Strengthening Result Result Result Total
% % % % % %
UK personal 101.3 (1.3) 102.6 104.3 101.7 107.2
UK commercial 95.3 1.9 93.4 872.0 88.5 97.0
Scandinavia 98.7 1.2 97.5 - 97.5 105.4
USA 141.1 33.7 107.4 112.1 97.7 109.2
Canada 100.4 1.0 99.4 - 99.4 108.6
International 94.9 0.2 94.7 110.2 94.2 104.7
Australia & New 95.7 - 95.7 95.7 - 95.3
Zealand
Group Reinsurance
108.1 8.5 99.6 111.0 95.2 104.0
The difference between the 95.2% quoted above for the ongoing underlying result
and the 96.4% quoted on page B16 is the share of the �500m reserve
strengthening relating to the ongoing operations.
TERRITORIAL ANALYSIS OF GENERAL BUSINESS OPERATIONS
THIRD QUARTER
Net Premiums
Written
2003 2002 Currency
Inc/dec
�m �m %
United Kingdom 776 770 1
Scandinavia 258 197 6
USA 121 436 (71)
Canada 134 128 (18)
International 180 195 (25)
Australia & New Zealand - 184 (100)
Group Reinsurance 2 - 160
1,471 1,910 (27)
Underwriting Result Operating Ratio
2003 2002 2003 2002
�m �m % %
United Kingdom 2 (11) 100.0 101.5
Scandinavia (3) (17) 103.5 109.4
USA (496) (29) 226.8 105.8
Canada (5) (3) 99.0 104.6
International 11 (9) 96.0 106.2
Australia & New Zealand - 7 - 92.2
Group Reinsurance (18) (1) - -
(509) (63) 128.4 103.0
Equalisation provision (10) (9)
Other items (refer to A6 and A7) (47) (13)
(566) (85)
General
Business
Result
(based on LTIR)
2003 2002
�m �m
United Kingdom 78 81
Scandinavia 26 8
USA (458) 17
Canada 9 11
International 32 18
Australia & New Zealand - 23
Group Reinsurance (19) (7)
(332) 151
UNITED KINGDOM GENERAL BUSINESS OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Written Underwriting Operating Ratio
Result
2003 2002 Inc/dec 2003 2002 2003 2002
�m �m % �m �m % %
Personal
Household 667 651 3 (1) (62) 100.0 111.6
Motor 298 380 (22) (22) (29) 106.3 107.7
Other* (87) 235 (137) 5 12 93.5 94.5
878 1,266 (31) (18) (79) 101.3 107.2
Commercial
Property 582 620 (6) 109 41 81.1 89.6
Casualty 255 227 12 (26) (19) 111.4 108.5
Motor 346 373 (7) 26 14 91.9 95.3
Other 130 101 29 (51) (21) 134.0 105.1
1,313 1,321 (1) 58 15 95.3 97.0
Total 2,191 2,587 (15) 40 (64) 98.0 101.8
General
Business
Result
(based on LTIR)
2003 2002
�m �m
Personal 55 17
Commercial 207 195
262 212
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 64.7 72.8 70.5 73.1 67.9 73.0
Expense ratio 36.6 34.4 24.8 23.9 30.1 28.8
101.3 107.2 95.3 97.0 98.0 101.8
* Premium impacted by a one off reinsurance premium to cover the existing
liabilities of the Healthcare and Assistance operation from the completion of
its disposal.
UNITED KINGDOM GENERAL BUSINESS OPERATIONS BREAKDOWN
THIRD QUARTER
Net Premiums Underwriting Operating Ratio
Written Result
2003 2002 Inc/dec 2003 2002 2003 2002
�m �m % �m �m % %
Personal
Household 233 249 (6) (6) (21) 101.6 112.6
Motor 97 120 (19) (4) (9) 104.2 108.4
Other 10 45 (78) - 7 113.2 100.4
340 414 (18) (10) (23) 103.0 109.5
Commercial
Property 176 193 (9) 41 6 80.4 94.6
Casualty 108 88 23 (20) (8) 128.3 110.6
Motor 113 127 (10) 8 13 92.2 87.6
Other 39 (52) 176 (17) 1 133.1 92.6
436 356 22 12 12 97.0 94.6
Total 776 770 1 2 (11) 100.0 101.5
General
Business
Result
(based on LTIR)
2003 2002
�m �m
Personal 14 9
Commercial 64 72
78 81
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 63.7 72.7 72.6 70.1 68.9 71.3
Expense ratio 39.3 36.8 24.4 24.5 31.1 30.2
103.0 109.5 97.0 94.6 100.0 101.5
UK PERSONAL GENERAL BUSINESS OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER
Net Written Premium Underwriting Result Operating Ratio
2003 2002 Inc/Dec 2003 2002 2003 2002
Personal �m �m % �m �m % %
Intermediated
Household 568 573 (1) 2 (49) 100.2 110.4
Motor 138 243 (43) (14) (23) 109.3 109.3
Other 4 26 (85) (1) (1) 100.9 108.3
710 842 (16) (13) (73) 103.0 110.1
MORE TH>N
Household 99 78 27 (3) (13) 99.8 119.6
Motor 160 137 17 (8) (6) 102.2 104.6
Other 11 11 (1) 122.0 115.9
- -
270 226 19 (12) (19) 102.1 110.4
Health
Other* (102) 198 (152) 7 13 88.1 91.4
(102) 198 (152) 7 13 88.1 91.4
Personal Total
Household 667 651 3 (1) (62) 100.0 111.6
Motor 298 380 (22) (22) (29) 106.3 107.7
Other* (87) 235 (137) 5 12 93.5 94.5
878 1,266 (31) (18) (79) 101.3 107.2
Operating Ratio UK PI MORE TH> Health Total
N
2003 2002 2003 2002 2003 2002 2003 2002
% % % % % % % %
Claims ratio 61.4 74.4 74.1 72.4 68.2 66.5 64.7 72.8
Expense ratio 41.6 35.7 28.0 38.0 19.9 24.9 36.6 34.4
103.0 110.1 102.1 110.4 88.1 91.4 101.3 107.2
* Premium impacted by a one off reinsurance premium to cover the existing
liabilities of the Healthcare and Assistance operation from the completion of
its disposal.
UK PERSONAL GENERAL BUSINESS OPERATIONS BREAKDOWN
THIRD QUARTER
Net Written Premium Underwriting Operating
Result Ratio
2003 2002 Inc/Dec 2003 2002 2003 2002
Personal �m �m % �m �m % %
Intermediated
Household 199 222 (10) (3) (17) 101.3 111.9
Motor 46 76 (39) (3) (6) 106.0 107.6
Other 4 3 33 - - 96.2 111.3
249 301 (17) (6) (23) 102.6 111.2
MORE TH>N
Household 34 27 26 (3) (4) 104.4 118.3
Motor 51 44 16 (1) (3) 102.1 109.3
Other 4 4 - - - 121.6 117.1
89 75 19 (4) (7) 103.9 112.9
Health
Other 2 38 (95) - 7 130.0 97.9
2 38 (95) - 7 130.0 97.9
Personal Total
Household 233 249 (6) (6) (21) 101.6 112.6
Motor 97 120 (19) (4) (9) 104.2 108.4
Other 10 45 (78) - 7 113.2 100.4
340 414 (18) (10) (23) 103.0 109.5
Operating Ratio UK PI MORE TH>N Health Total
2003 2002 2003 2002 2003 2002 2003 2002
% % % % % % % %
Claims ratio 58.3 74.9 78.2 73.9 100.0 61.3 63.7 72.7
Expense ratio 44.3 36.3 25.7 39.0 30.0 36.6 39.3 36.8
102.6 111.2 103.9 112.9 130.0 97.9 103.0 109.5
SCANDINAVIA GENERAL BUSINESS OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Written Underwriting Result Operating
Ratio
2003 2002 2002 2003 2002 2002 2003 2002
Currency
Adjusted Original Inc/dec Adjusted Original
�m �m �m % �m �m �m % %
Personal
Denmark 144 138 123 5 (1) (8) (8) 100.2 105.7
Sweden 277 243 217 14 (15) (10) (8) 104.7 103.6
Other 42 42 38 - - - - 96.8 98.2
463 423 378 10 (16) (18) (16) 102.7 103.9
Commercial
Denmark 200 180 162 11 8 (10) (9) 93.0 103.8
Sweden 227 173 155 31 4 (20) (18) 95.8 112.4
Other 25 25 22 (1) 1 (1) (1) 96.6 99.2
452 378 339 19 13 (31) (28) 94.5 107.4
Total
Denmark 344 318 285 8 7 (18) (17) 96.0 104.6
Sweden 504 416 372 21 (11) (30) (26) 100.9 106.9
Other 67 67 60 - 1 (1) (1) 96.7 98.5
915 801 717 14 (3) (49) (44) 98.7 105.4
General
Business
Result
(based on
LTIR)
2003 2002
�m �m
Personal 22 25
Commercial 45 9
67 34
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 83.2 83.4 76.7 89.5 80.1 86.1
Expense ratio 19.5 20.5 17.8 17.9 18.6 19.3
102.7 103.9 94.5 107.4 98.7 105.4
SCANDINAVIA GENERAL BUSINESS OPERATIONS BREAKDOWN
THIRD QUARTER
Net Premiums Written Underwriting Operating Ratio
Result
2003 2002 Currency 2003 2002 2003 2002
Inc/dec
�m �m % �m �m % %
Personal
Denmark 38 34 (11) - (5) 105.8 113.1
Sweden 100 74 13 (11) (1) 111.2 101.5
Other 13 10 4 - 1 98.9 95.0
151 118 5 (11) (5) 107.8 104.0
Commercial
Denmark 49 41 (3) 3 (5) 95.7 114.0
Sweden 51 32 24 4 (7) 103.4 121.3
Other 7 6 (12) 1 - 96.4 101.1
107 79 8 8 (12) 99.5 116.4
Total
Denmark 87 75 (6) 3 (10) 100.1 113.6
Sweden 151 106 16 (7) (8) 106.5 108.5
Other 20 16 (2) 1 1 97.7 97.3
258 197 6 (3) (17) 103.5 109.4
General
Business
Result
(based on LTIR)
2003 2002
�m �m
Personal 4 8
Commercial 22 -
26 8
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 86.8 84.6 73.2 93.9 80.3 88.7
Expense ratio 21.0 19.4 26.3 22.5 23.2 20.7
107.8 104.0 99.5 116.4 103.5 109.4
USA GENERAL BUSINESS OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Written Underwriting Result Operating
Ratio
2003 2002 Inc/dec 2003 2002 2003 2002
$m $m % $m $m % %
Personal
Household 150 126 19 (10) 15 106.1 87.3
Automobile 483 460 5 32 (2) 93.6 100.6
633 586 8 22 13 96.4 97.9
Commercial
Property 143 332 (57) 23 10 90.8 95.7
Package 270 259 4 (22) (89) 104.8 144.1
Automobile 166 163 2 (1) (3) 100.2 102.8
Workers' comp 430 555 (22) (391) (58) 177.5 111.6
General 209 364 (43) (586) (77) 279.0 118.6
liability
1,218 1,673 (27) (977) (217) 158.4 113.2
Total 1,851 2,259 (17) (955) (204) 141.1 109.2
�m �m �m % �m �m �m % %
Adjusted Original Adjusted Original
Personal 381 353 373 8 13 7 8 96.4 97.9
Commercial 734 1,008 1,066 (27) (588) (131) (138) 158.4 113.2
1,115 1,361 1,439 (17) (575) (124) (130) 141.1 109.2
General
Business
Result
(based on
LTIR)
2003 2002
$m $m
Personal 59 53
Commercial (790) 9
(731) 62
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 69.1 71.8 127.7 80.0 111.4 77.9
Expense ratio 27.3 26.1 30.7 33.2 29.7 31.3
96.4 97.9 158.4 113.2 141.1 109.2
USA GENERAL BUSINESS OPERATIONS BREAKDOWN
THIRD QUARTER
Net Premiums Written Underwriting Operating Ratio
Result
2003 2002 Inc/dec 2003 2002 2003 2002
$m $m % $m $m % %
Personal
Household 55 48 15 (7) 5 113.1 87.2
Automobile 160 149 7 23 (3) 85.0 102.7
215 197 9 16 2 91.8 99.4
Commercial
Property (155) 85 (282) 6 (23) 76.8 108.7
Package 75 95 (16) (19) (9) 115.1 107.7
Automobile 44 55 (9) 1 - 97.0 101.3
Workers' comp 71 170 (58) (337) (8) 323.3 108.1
General liability (38) 133 (35) (492) (12) 765.7 110.3
(3) 538 (101) (841) (52) 291.9 107.9
Total 212 735 (71) (825) (50) 226.8 105.8
�m �m % �m �m % %
Personal 127 117 9 10 1 91.8 99.4
Commercial (6) 319 (101) (506) (30) 291.9 107.9
121 436 (71) (496) (29) 226.8 105.8
General
Business
Result
(based on LTIR)
2003 2002
$m $m
Personal 28 15
Commercial (789) 14
(761) 29
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 64.5 72.1 257.5 73.0 195.1 72.8
Expense ratio 27.3 27.3 34.4 34.9 31.7 33.0
91.8 99.4 291.9 107.9 226.8 105.8
INTERNATIONAL GENERAL BUSINESS OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Written Underwriting Result Operating
Ratio
2003 2002 2002 Currency 2003 2002 2002 2003 2002
Adjusted Original Inc/dec
Adjusted Original
Personal �m �m �m % �m �m �m % %
Other Europe & 171 339 307 (49) 9 (21) (19) 95.4 105.9
Middle East
LAC 67 65 65 4 1 (1) (1) 96.1 101.8
Asia 37 40 39 (7) 7 (3) (3) 84.7 109.3
275 444 411 (38) 17 (25) (23) 93.9 105.0
Commercial
Other Europe & 153 266 240 (43) 7 (16) (15) 95.8 105.6
Middle East
LAC 99 101 102 (2) 10 3 3 89.9 96.6
Asia 51 56 58 (9) (4) (9) (9) 107.3 113.5
303 423 400 (28) 13 (22) (21) 95.8 104.3
Total
Other Europe & 324 605 547 (46) 16 (37) (34) 95.5 105.8
Middle East
LAC 166 166 167 0 11 2 2 92.4 98.6
Asia 88 96 97 (8) 3 (12) (12) 96.2 110.5
578 867 811 (33) 30 (47) (44) 94.9 104.7
General
Business
Result
(based on
LTIR)
2003 2002
Personal �m �m
Other Europe & Middle 28 12
East
LAC 5 5
Asia 8 -
41 17
Commercial
Other Europe & Middle 24 14
East
LAC 16 11
Asia 4 (2)
44 23
Total
Other Europe & Middle 52 26
East
LAC 21 16
Asia 12 (2)
85 40
Operating Ratio Commercial Total
Personal
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 61.3 70.9 60.5 70.1 60.9 70.5
Expense ratio 32.6 34.1 35.3 34.2 34.0 34.2
93.9 105.0 95.8 104.3 94.9 104.7
INTERNATIONAL GENERAL BUSINESS OPERATIONS BREAKDOWN
THIRD QUARTER
Net Premiums Written Underwriting Operating Ratio
Result
2003 2002 Inc/dec 2003 2002 2003 2002
Personal �m �m % �m �m % %
Other Europe & Middle 56 76 (39) 5 2 92.2 97.9
East
LAC 21 20 (12) - - 98.5 100.0
Asia 13 12 (11) 3 (1) 80.5 108.5
90 108 (31) 8 1 91.9 99.7
Commercial
Other Europe & Middle 47 47 (22) 3 (10) 98.0 120.9
East
LAC 27 25 (18) 2 1 94.6 96.2
Asia 16 15 (8) (2) (1) 114.9 105.7
90 87 (19) 3 (10) 100.0 113.3
Total
Other Europe & Middle 103 123 (32) 8 (8) 94.7 107.8
East
LAC 48 45 (15) 2 1 96.2 97.8
Asia 29 27 (9) 1 (2) 98.4 107.2
180 195 (25) 11 (9) 96.0 106.2
General
Business
Result
(based on LTIR)
2003 2002
Personal �m �m
Other Europe & Middle 12 12
East
LAC 2 1
Asia 2 -
16 13
Commercial
Other Europe & Middle East 8 -
LAC 4 4
Asia 4 1
16 5
Total
Other Europe & Middle East 20 12
LAC 6 5
Asia 6 1
32 18
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 59.3 65.0 59.6 74.3 59.5 69.6
Expense ratio 32.6 34.7 40.4 39.0 36.5 36.6
91.9 99.7 100.0 113.3 96.0 106.2
INTERNATIONAL - CANADA GENERAL BUSINESS OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER 2003
Net Premiums Written Underwriting Result Operating Ratio
2003 2002 Inc/ 2003 2002 2003 2002
dec
C$m C$m % C$m C$m % %
Personal
Household 184 196 (6) 1 (2) 97.6 102.1
Motor 461 462 (0) (8) (51) 99.0 112.4
645 658 (2) (7) (53) 98.3 109.4
Commercial
Property 53 83 (36) 3 (1) 100.5 102.3
Motor 86 153 (44) (10) (20) 114.5 113.4
General 43 70 (38) (7) (12) 117.1 116.9
liability
Other 42 40 5 3 6 91.5 85.8
224 346 (35) (11) (27) 108.1 107.7
Total 869 1,004 (13) (18) (80) 100.4 108.6
�m �m �m % �m �m �m % %
Adjusted Original Adjusted Original
Personal 288 294 264 (2) (3) (24) (21) 98.3 109.4
Commercial 100 155 139 (35) (5) (12) (11) 108.1 107.7
388 449 403 (13) (8) (36) (32) 100.4 108.6
General
Business
Result
(based on LTIR)
2003 2002
C$m C$m
Personal 43 (2)
Commercial 30 27
73 25
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims 75.8 82.7 66.5 70.4 73.0 78.3
ratio
Expense 22.5 26.7 41.6 37.3 27.4 30.3
ratio
98.3 109.4 108.1 107.7 100.4 108.6
INTERNATIONAL - CANADA GENERAL BUSINESS OPERATIONS BREAKDOWN
THIRD QUARTER
Net Premiums Written Underwriting Operating Ratio
Result
2003 2002 Inc/dec 2003 2002 2003 2002
C$m C$m % C$m C$m % %
Personal
Household 70 85 (17) (5) - 100.9 100.2
Motor 162 173 (7) 3 (21) 92.8 113.6
232 258 (10) (2) (21) 95.6 110.2
Commercial
Property 15 27 (45) (2) 2 113.6 99.7
Motor 28 46 (40) (2) - 112.9 105.2
General liability 12 20 (37) (5) 5 127.8 86.0
Other 14 14 4 1 2 93.4 89.6
69 107 (35) (8) 9 111.6 97.6
Total 301 365 (18) (10) (12) 99.0 104.6
�m �m % �m �m % %
Personal 105 92 (10) (1) (7) 95.6 110.2
Commercial 29 36 (35) (4) 4 111.6 97.6
134 128 (18) (5) (3) 99.0 104.6
General
Business
Result
(based on LTIR)
2003 2002
C$m C$m
Personal 17 (2)
Commercial 4 29
21 27
Operating Ratio Personal Commercial Total
2003 2002 2003 2002 2003 2002
% % % % % %
Claims ratio 75.8 84.4 69.9 56.6 74.1 74.3
Expense ratio 19.8 25.8 41.7 41.0 24.9 30.3
95.6 110.2 111.6 97.6 99.0 104.6
TERRITORIAL ANALYSIS OF GENERAL BUSINESS ONGOING OPERATIONS
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Underwriting Operating
Written Result Ratio
2003 2003 2003
�m �m %
United Kingdom 1,974 128 93.1
Scandinavia 915 (3) 98.7
USA 469 (5) 97.7
Canada 388 (8) 100.4
International 549 30 94.4
Australia & New Zealand - - -
Group Reinsurance 4 (27) -
4,299 115 96.2
Discontinued business 1,175 (177) 111.0
Reserve strengthening on - (468) -
discontinued business
5,474 (530) 108.1
Please refer to page A9 for a list of businesses excluded from this analysis.
UNITED KINGDOM GENERAL BUSINESS ONGOING OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Underwriting Operating
Written Result Ratio
2003 2003 2003
�m �m %
Personal
Household 362 6 97.9
Motor 291 (8) 101.4
Other 15 (3) 110.6
668 (5) 99.7
Commercial
Property 581 110 81.0
Casualty 255 (26) 111.4
Motor 346 27 91.9
Other 124 22 87.5
1,306 133 89.7
Total 1,974 128 93.1
Discontinued business 217 (78) 119.3
Reserve strengthening on - (10) -
discontinued business
2,191 40 98.0
Operating Ratio
Personal Commercial Total
2003 2003 2003
% % %
Claims ratio 67.2 65.2 65.9
Expense ratio 32.5 24.5 27.2
99.7 89.7 93.1
Please refer to page A9 for a list of businesses excluded from this analysis.
USA GENERAL BUSINESS ONGOING OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Underwriting Operating
Written Result Ratio
2003 2003 2003
$m $m %
Personal
Household - - -
Automobile 297 16 94.6
297 16 94.6
Commercial
Property 17 (4) 126.3
Package 162 13 86.3
Automobile 70 - 95.0
Workers' comp 85 - 80.2
General liability 148 (33) 121.3
482 (24) 100.3
Total 779 (8) 97.7
Discontinued business 1,072 (186) 112.1
Reserve strengthening on - (761) -
discontinued business
1,851 (955) 141.1
�m �m %
Personal 179 10 94.6
Commercial 290 (15) 100.3
469 (5) 97.7
Discontinued business 646 (112) 112.1
Reserve Strengthening on - (458) -
discontinued business
1,115 (575) 141.1
Operating Ratio Personal Commercial Total
2003 2003 2003
% % %
Claims ratio 70.0 75.8 73.1
Expense ratio 24.6 24.5 24.6
94.6 100.3 97.7
Please refer to page A9 for a list of businesses excluded from this analysis
INTERNATIONAL GENERAL BUSINESS ONGOING OPERATIONS BREAKDOWN
NINE MONTHS TO 30 SEPTEMBER
Net Premiums Underwriting Operating
Written Result Ratio
2003 2003 2003
Personal �m �m %
Other Europe & Middle East 170 9 95.0
LAC 58 1 95.8
Asia 37 8 84.7
265 18 93.5
Commercial
Other Europe & Middle East 147 8 95.0
LAC 86 9 87.2
Asia 51 (5) 107.6
284 12 95.1
Total
Other Europe & Middle East 317 17 95.0
LAC 144 10 90.7
Asia 88 3 96.3
549 30 94.4
Discontinued business 29 - 110.2
Reserve strengthening on - - -
discontinued business
578 30 94.9
Operating Ratio Personal Commercial Total
2003 2003 2003
% % %
Claims ratio 61.7 61.9 61.8
Expense ratio 31.8 33.2 32.6
93.5 95.1 94.4
Please refer to page A9 for a list of businesses excluded from this analysis.
TERRITORIAL ANALYSIS OF LIFE BUSINESS OPERATIONS
LIFE & PENSIONS
Net Premiums Written Nine Months to 30 September Third Quarter
2003 2002 2002 Currency 2003 2002
Adjusted Original Inc/dec
�m �m �m % �m �m
United Kingdom 725 945 945 (23) 250 320
Scandinavia 212 180 161 18 77 50
Other 187 561 529 (67) 40 123
1,124 1,686 1,635 (33) 367 493
Life Business Result Nine Months to 30 September Third Quarter
2003 2002 2002 Currency 2003 2002
Adjusted Original Inc/dec Adjusted
�m �m �m % �m �m
United Kingdom 67 79 79 (15) 23 23
Scandinavia 24 24 21 (1) 8 4
Other 16 38 34 (58) 1 3
107 141 134 (24) 32 30
Other items (refer to (5) (10) (9) 49 - (2)
A6 and A7)
102 131 125 (22) 32 28
SHAREHOLDERS' INTEREST IN LONG TERM BUSINESS 9 Months 9 Months 12 Months
2003 2002 2002
(unaudited) (unaudited) (unaudited)
�m �m �m
Balance brought forward 1,874 2,503 2,503
Exchange 60 (24) (2)
Movements for the year (246) (329) (180)
Dividends and transfers (78) (61) (109)
Capital injections 47 30 (49)
Acquisitions - 6 (136)
Disposals (262) (137) (153)
Balance carried forward 1,395 1,988 1,874
END