21 March 2018

RSA INSURANCE GROUP PLC

(THE "COMPANY")

2017 ANNUAL FINANCIAL REPORT ANNOUNCEMENT

In accordance with Listing Rule 9.6 and Disclosure and Transparency Rule ("DTR") 4.1, the Company announces that the following documents have been posted to shareholders and have today been submitted to the UK Listing Authority via the National Storage Mechanism:

· Annual Report and Accounts for the year ended 31 December 2017

· Notice of the 2018 Annual General Meeting to be held on 11 May 2018

· Proxy form for the 2018 Annual General Meeting

The above mentioned documents (except for the Proxy form) are available on our website at www.rsagroup.com and www.rsagroup.com/agm2018 and will shortly be made available for inspection at www.morningstar.co.uk/uk/NSM . Shareholders can obtain additional copies of the Proxy form from our Registrar, Equiniti Limited, at Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA.

This announcement should be read in conjunction with the Company's announcement issued on 22 February 2018. Together these constitute the material required by DTR 6.3 to be communicated to the media in full unedited text through a Regulatory Information Service. This material is not a substitute for reading the Company's 2017 Annual Report and Accounts.

An indication of the important events that occurred in 2017 and their impact on the condensed consolidated financial statements, the condensed consolidated financial statements themselves and the responsibility statement were announced to the London Stock Exchange on 22 February 2018, forming part of the Preliminary Results announcement for the year ended 31 December 2017. In the Appendix below for the purposes of compliance with DTR 6.3.5 is the statement of key risks and mitigants which is set out in the 2017 Annual Report and Accounts and the text of note 15 to the consolidated financial statements in the 2017 Annual Report and Accounts concerning related party transactions.

Enquiries:

Zillah Stone

Interim Deputy Group Company Secretary

RSA Insurance Group plc

Tel: +44 (0) 20 7111 7000

IMPORTANT DISCLAIMER

Visit www.rsagroup.com for more information.

This press release (together with the Annual Report and Accounts referred to herein) has been prepared in accordance with the requirements of English company law and the liabilities of the directors in connection with this press release (together with the Annual Report and Accounts referred to herein) shall be subject to the limitations and restrictions provided by such law. This press release may contain 'forward-looking statements' with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition, performance, results, strategic initiatives and objectives. Generally, words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "continue", "potential", "target", "reasonably possible" or similar expressions identify forward-looking statements. By their nature, all forward-looking statements involve risk and uncertainty because they relate to, and maybe impacted by, future events and circumstances which are beyond the Group's control, including amongst other things, UK domestic, European and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of governments, central banks and regulatory authorities (including changes related to capital and solvency requirements whether in the UK, Europe or globally), the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affiliates operate. The Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group's forward-looking statements and, as a result these forward-looking statements are not guarantees of future performance of the Group and undue reliance should not be placed on them. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Neither the content of RSA's website nor the content of any other website accessible from hyperlinks on RSA's website is incorporated into, or forms part of, this document. Nothing in this press release (together with the Annual Report and Accounts referred to herein) should be construed as a profit forecast.

APPENDIX

References to page numbers and notes to the accounts made in this Appendix refer to page numbers and notes to the accounts in the 2017 Annual Report and Accounts.

KEY RISKS AND MITIGANTS

Key risk and exposures

Solvency II
SCR %

Key mitigants and controls

Commentary

Catastrophe risk

Arises from the risk of large natural disasters with our main exposure being to European windstorms and Canadian earthquakes.

- Our reinsurance programme significantly reduces our exposure to catastrophe
risks with losses arising from the 2017 Hurricane season being well covered by our programme. Programme is designed
to cover at least 1 in 200 year events.

Consistent with our strategy and appetite of retaining risks that reside within our core expertise, where we are able to maximise risk-adjusted returns, our Solvency II Capital Requirement (SCR) is primarily comprised of insurance-related
risks, including higher than
anticipated underwriting losses, large retained catastrophe losses
and deterioration in our stock of reserves for future claims.

Reserving risk

This is the risk that the Group's estimate of future claims is insufficient. Longer tail line of business present more uncertainty on the size and timing of payments, with our key exposure being the Swedish personal accident lines. Risk includes legislative changes e.g. Ogden rate change.

- Reserves are reviewed and challenged at the Group Reserving Committee which
is attended by the Group Chief Actuary, the CRO, CFO and CEO

- The Reserve assurance programme has independently verified >90 percent of the Group's net reserves over a three year period

- Economic transfer of the UK legacy insurance liabilities, effective at 31 December 2016, reduced Group's
exposure to Ogden rate change.

Whilst our investment strategy remains deliberately conservative
we continue to look for opportunities to increase returns through the purchase of less liquid high-quality assets as we are able to match the cash flow profile against that of
our liabilities.

Another key SCR risk arises from the Group's defined benefit pension schemes. Although these schemes are well funded (95 percent per latest triennial review), under the Solvency II rules we are required to hold sufficient capital to withstand a 1 in 200 year event. For more information on the pension schemes see note 38 of the financial statements.

Underwriting and claims risk

This is the risk that underwritten business is less profitable than planned due to insufficient pricing and setting of claims case reserves. Key exposures arise from large portfolios where claims trends are slow to emerge such as UK Commercial and Marine.

- Controlled through well-defined risk appetite statements which are rigorously monitored at quarterly portfolio reviews, with remediation actions taken where deemed necessary

- Claims case reserves are prudently set
and reviewed at quarterly case reserving committees

- Extensive control validation and assurance activities performed - with over 100 separate assurance reviews having been performed.

Market, credit and currency risk

This is the risk to our insurance funds arising from movements
in macroeconomic variables including widening credit spreads, declining bond yields or currency fluctuations.

- RSA adopts a prudent investment strategy with the investment portfolio favouring high-quality fixed income bonds

- Asset Liability Committee ensures assets are closely duration and currency matched with insurance liabilities to hedge volatility

- Investment positions are regularly monitored to ensure limits remain
within appetite.

Pension risk

We face longevity and in particular market related risks which arise from our defined benefit pension schemes. The largest exposures arise from credit spread and equity movements, although these are partly hedged by offsetting movements in the Insurance Investment Fund.

- Funding assets are well matched to liabilities in the pension schemes,
including the use of swap arrangements

- Reached an agreement to close the UK schemes to further accrual from
31 March 2017

- RSA continues to work with the pension trustees in order to further explore
options to de-risk the pension funds.

Operational risk

These risks relate to customer and/or reputational damage arising from operational failures such as IT system failure.

- Extensive Line 2 and 3 challenge over the continued progress in executing the Group's transformation programme

- Clearly articulated IT risk appetite supported by control testing and appropriate remediation plans

- Extensive control review and testing with >1,000 control enhancement steps in the last two years.

RELATED PARTY TRANSACTIONS

The following transactions were carried out with key management:

	2017 £m	2016 £m
Salaries and other short-term employee benefits	7	7
Bonus awards	3	5
Pension benefits	-	1
Share based awards	5	4
Total	15	17

Key management personnel comprise members of the Group Executive Committee, executive directors, and non-executive directors.

Included in salaries and other short term employee benefits and bonus awards is £4,625,000 (2016: £5,239,000) paid in respect of directors. These amounts exclude the value of share options granted to directors and gains made on the exercise of such options, Group contributions paid in respect of pension schemes and cash or other assets received or receivable under long term incentive schemes. The total value of the directors' remuneration (including values for these excluded items) and other details are disclosed in the remuneration report.

A number of the directors, other key managers, their close families and entities under their control have general insurance policies with subsidiary companies of the Group. Such policies are available at discounted rates to all employees including executive directors.

RESPONSIBILITY STATEMENT

We confirm that to the best of our knowledge:

• The financial statements on pages 106 to 185, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the financial position of the Group and Parent Company and profit or loss of the Group; and

• The Management Report on pages 4 to 96 includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties the Group faces.

Signed by order of the Board

Stephen Hester	Scott Egan
Group Chief Executive	Group Chief Financial Officer
21 February 2018	21 February 2018