Insurer RSA to take £50m hit from rain

 
City A.M. Reporter
RSA, Britain's biggest commercial insurer, expects to take a hit of at least £50m from the recent heavy rainfall and flooding in the UK, it said on Wednesday.

"Following the wettest June on record in the UK ... the net loss across the group's UK household, motor and commercial property portfolios from last month's adverse weather is estimated to be around £40m," the company said in a statement.

"Current expectations are that the impact of the continued rainfall experienced to date in July will be around £10m."

Record rainfall over the last three months has brought repeated flooding to parts of Britain, prompting warnings from analysts that insurers may miss profit targets because of a surge in claims.

RSA also said it expected losses related to two earthquakes in the Emilia-Romagna region of Italy in May to come in at around 35 million pounds.

The insurer, best-known in Britain for its More Than home and motor insurance brand, said it continued to deliver a strong underwriting performance across its portfolio despite the weather hit.

Assuming a more normal level of weather losses in the second half, RSA said it expected its combined operating ratio for the full year to be better than 96 per cent.