Bad weather dents profits at RSA

Fri, 25 Feb 2011

Increased car insurance claims due to extremely bad weather in the UK this winter have been blamed by RSA Insurance for a fall in profits.

The group, which owns More Than car and home insurance, has reported pre-tax profits of £474 million in 2010, a fall of 14 per cent compared to the year before.

It said this was largely down to the bad weather in November and December last year, which led to claims £110 million higher than expected for the period from burst water pipes and snow-related car accidents .

Despite this, Andy Haste, RSA chief executive, was optimistic of a strong performance in 2011.

"We go into 2011 with confidence and despite challenging market conditions, expect to deliver targeted growth in the UK, around ten per cent in international and double digit growth in emerging markets," he said.

"As it stands today and assuming a return to more normal levels of weather losses, we also expect to deliver a combined [operating ratio] for the group of better than 95 per cent."

RSA currently operates in 130 countries, providing general insurance products to over 20 million customers
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