RSA Updates Earnings Forecast after UK Weather, Italian Quake Losses

July 18, 2012

UK-based RSA has issued a bulletin following “the wettest June on record in the UK.” RSA said it expects a “net loss across the Group’s UK Household, Motor and Commercial Property portfolios from last month’s [June] adverse weather” of around £40 million [$62.5 million]. “Current expectations are that the impact of the continued rainfall experienced to date in July will be around £10 million [$15.63 million].”

In addition RSA said 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 £35 million [$54.71 million].”

On a more positive note the bulletin pointed out that “RSA continues to deliver a strong underwriting performance across its diversified international portfolio. However, reflecting the impact of the above events and assuming a more normal level of weather losses in the second half, the combined operating ratio for the full year 2012 is now expected to be better than 96 percent.”

Source: RSA

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