RSA Insurance Group is a UK-based general insurer organized into three regions: UK (H1-10: 38% of Net Written Premium - NWP), International (50%) and Emerging Markets (EM) (12%). With 6.8% y-o-y growth in NWP in H1-10, RSA expects strong profits from International operations in 2010. EM’ NWP increased 18% y-o-y in H1-10, driven by Latin America. The UK, where it has c.7% market share, reported a 3% fall in NWP in 2009, but performed better in H1-10 (+9% y-o-y) with rate increases. Motor rates (37% of UK NWP) in particular have risen sharply across the UK industry. Bolt-on acquisitions continue to drive NWP, with more expected; although with a cash position of GBP 1.2bn in H1-10, external funding will be needed for larger projects. Low insurance penetration and continued investment by RSA places EM' as a possible robust future growth driver. RSA has a conservative investment strategy (87% fixed income and cash, of which 78% is rated AA or above) with minimal exposure to PIIGS, and comfortable solvency cover (230%), while combined ratio consistently beats main peers.