June's miserable weather and the continuation of same in July is likely to put a dampener on the RSA Insurance Group's full year underwriting performance.
The insurance group has estimated that across its UK Household, Motor and Commercial Property portfolios the net loss from June's adverse weather was around £40m. Current expectations are that the impact of the continued rainfall experienced to date in July will be around £10m.
In addition, the net loss to the group in relation to the two earthquakes in the Emilia-Romagna region of Italy in May is estimated to be around £35m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
As a consequence, RSA has revised its guidance for the combined operating ratio - a measure of how well an insurer takes on risk (lower is better) - for the full year to "better than 96%", having previously indicated in February it would be "better than 95%".
JH
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
