More Than insurer RSA reveals £50m summer hit
More Than insurer RSA today revealed a £50 million hit after the UK's dire summer weather resulted in more than 6,500 claims since June alone.
The wettest June on record landed the group with a £40 million bill while it expects to suffer another £10 million hit so far in July as Britain continues to be battered by rain.
It said the East Midlands, North East and North West were the worst-affected areas, suffering storm damage, flooding and even hail stones the size of golf balls.
RSA, which operates in 140 countries, also revealed a £35 million impact from claims relating to the two earthquakes in Italy in May.
RSA said more than half its weather-related UK claims have already been settled.
The group's combined operating ratio, which shows claims and expenses as a percentage of premium income - where a figure below 100% means a profit is being made - has been affected by the recent claim losses.
RSA said it is now expected to be "better than" 96%, against 95% previously.
While the UK has seen record rainfall since April, RSA said this year's weather claims fall far short of the company's £120 million bill from the widespread flood damage seen in 2007.
But RSA shares fell by about 3% after news of the claims bill.
The group recently revealed it was also suffering from a "dysfunctional" motor insurance market after reporting a 17% slump in the division's premiums during the first quarter of 2012.
It is focusing on more profitable areas in the UK, such as pet and household insurance, while operations in emerging markets are also helping offset tougher domestic markets.
RSA, which employs 23,000 staff, has major operations in countries such as Canada, Ireland and Scandinavia, as well as across regions including Asia and Latin America.
Apple agrees deal with Visa on contactless payments
- 1 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 2 Perez Hilton apologises for Jennifer Lawrence naked photo leak
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Mexican woman becomes world’s 'oldest person' at 127
- 5 Jennifer Lawrence 'naked sex video' will be leaked threatens 4Chan celebrity photo hacker
iPhone 6 'hidden code' could indicate sharper screens or bigger phones
Perez Hilton apologises for Jennifer Lawrence naked photo leak
Ariana Grande nude photos leak: 'These are completely fake' say singer's representatives
A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Kate Upton nude pictures leak: Model's representatives 'looking into' authenticity of naked images
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
iJobs Money & Business
£85000 per annum: Harrington Starr: Head of IT (Windows, Server, VMware, SAN, ...
£40000 - £50000 per annum: Harrington Starr: You will not be expected to hav...
£500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Data Warehousi...
£650 per day: Harrington Starr: .NET Developer C#, Win Forms, WPF, WCF, MVVM,...