RSA News Update: The Real Costs of Storms
RSA news update: following the barrage of storms Europe has faced in recent weeks, insurance company RSA are facing a hefty bill for all the damage caused.
The impact of natural disasters on the insurance industry is vast and the latest figures to be released are a stark reminder of this fact.
“Its warning came as the Association of British Insurers estimated that the total cost of the storms to the UK insurance industry could be up to £130million.
Shares in RSA fell 6.2 per cent, down 8p to 121p, wiping £282million off the stock market value of the FTSE 100 company.
RSA said the “severe European windstorm” that hit the UK and continent last month would cost them £45million to £65million.
It said the majority of the UK was affected by peak wind speeds of 60mph or less and the most extreme conditions were in relatively unpopulated areas.
The majority of its bill came from Scandinavia which was worst hit as the storm increased and gathered strength over the North Sea.
The wind reached speeds of 110mph over Denmark. Severe weather in Canada and flooding in June and July have also cost the company £83million.
Chief executive Simon Lee said: “This year is proving to be an exceptionally tough one for weather events for the group.”
In a trading update RSA said its income from premiums was up 7 per cent to £6.7billion, with the fastest growth in emerging markets and Canada.
Its figures were released as insurance broker Willis re-estimated the cost of the European storms at £1billion.
That compares with an estimated £2billion bill for the 1987 storms that batteredBritain.”
RSA News Update
Natural disasters are one of the biggest expenses for insurance companies and there is no way for the companies to guard against the problem – hence the natural element! There is no insurance policy for insurance companies but the impact that the cost of paying out in situations such as this has on the company is huge and can cause serious problems. The stock market is fickle and one incident such as this can do more damage than is easily recovered from.
More information on any of the information listed in this article can be found by contacting RSA directly. All of their contact details can be found by following this link http://www.customerservicescontact.co.uk/rsa-phone-number/, but you can also read all of the latest news stories about the company if you click here.
This article was originally sourced from http://www.express.co.uk/finance/city/441385/RSA-Insurance-in-eye-of-storm-as-Europe-bill-soars-after-extreme-weather.
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