December 5, 2020

RSA insurance group books £50m hit for US and Caribbean hurricanes

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By Scott McCulloch From insider.co.

The hurricane provisions have been booked in the UK segment which also suffered from large weather-related losses and inflationary pressure on home insurance

Insurer has booked a £50 million hit from recent major hurricanes in the Caribbean and United States and warns the bill will likely rise as more claims come in.

RSA said group premium has risen eight per cent in the year to date to £5 billion “despite hurricane costs” in the third quarter.

The hurricane provisions have been booked in the UK segment which has also been hit by “continuing adverse household and large loss experience”, notably on large weather-related losses and inflationary pressure on home insurance.

RSA said notwithstanding the hurricane impact, market conditions across the insurance and finance industry are largely unchanged but warned the influence of recent storms on market pricing trends “is as yet unclear”.

RSA chief executive Stephen Hester 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.”

Rival insurer recently estimated it would take a $3.6 billion (£2.7 billion) hit on three recent major hurricanes as well as the combined effects of two Mexican earthquakes.

Swiss Re estimated the total insured market losses for the whole industry could come to around $95 billion (£72 billion).

This estimate was less than half forecast by Lloyd’s of London chief executive Inga Beale who said the insurance market could be facing a near $200 billion (£152 billion) hit as a result of hurricanes alone.

Lloyd’s has already begun paying “significant amounts” to those affected by Harvey and Irma, which have devastated parts of the US and Caribbean.

Insurer Hiscox has estimated those two storms alone will cost it around $225 million (£170 million) in claims.

For more on this story and video go to: http://www.insider.co.uk/company-results-forecasts/rsa-insurance-group-books-50m-11455315

 

 

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