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.
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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
