Insurer RSA said that natural catastrophes in the US and Caribbean would cost it £50m, but cautioned that it expected the figure to rise.
In a third quarter trading statement on Thursday, the group said that the impact of the catastrophes – which include a series of hurricanes in recent months – on insurance prices was “still unclear”.
RSA also said that it had suffered particularly high “large losses” in its marine and international portfolios. Analysts have noted that the company’s large loss ratio in the first half of the year was ahead of the five-year average. The company said that “underwriting actions are underway to improve performance for 2018”.
Overall premium income was up 8 per cent at just over £5bn, with much of the growth coming from the Scandinavian and Canadian businesses.
The company did not provide detailed profit figures, but it said that underwriting results in Canada, Scandinavia, Ireland and the middle east were ahead of last year.
Stephen Hester, RSA chief executive, said:
The progress at RSA overall leaves group profits ahead of the same period in 2016 though by less than we had targeted. We are continuing to drive business enhancements across the Group, whilst taking further underwriting action in some portfolios to improve performance for 2018.
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