RSA Insurance (LON:RSA) said the impact of lockdowns and other restrictions meant non-COVID-19 claims were down sharply across its lines of business in 2020.

Non-COVID-19 claims frequency was down vs the prior year in a range of 9-34%, it said in a statement with results for the year to end-December 2020.

The FTSE 100 insurer said this helped to offset lower investment income, lower premiums and also the cost of COVID-19 claims.

RSA was involved in a test case brought by hundreds of small businesses and the FCA over whether business interruption cover included COVID-19.

In January, the UK Supreme Court ruled in favour of the policyholders.

RSA said it has increased its gross loss provision as a result of the judgment but after reinsurance it does not expect its net losses to be above its previous £259mln provision level.

The insurer added it had provided for £250mln in specific COVID-19 claims in 2020, while the pandemic had reduced premiums by £166mln.

Profits for the year ended December 2020 fell 5% to £364mln in spite of a bumper year for its underwriting profits, rising 45% as its combined ratio improved by three percentage points.

RSA has agreed to a £7.2bn joint takeover from Scandinavian business Tryg and Canadian firm Intact.

The offer is on track to complete in the coming months, ending a chapter for RS,” said chief executive Stephen Hester.

There is no final dividend due to the offer.

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