Economy

RSA third-quarter underwriting hit by hurricanes

RSA third-quarter underwriting hit by hurricanes”

The More Than owner is the latest insurer to count the cost of a series of natural disasters in the third quarter.

Earlier this year, RSA said its United Kingdom operations were grappling with hard trading conditions after being hit by weather and large losses, as well as inflationary pressure in home insurance.

"The progress at RSA overall leaves Group profits ahead of the same period in 2016 though by less than we had targeted", said CEO Stephen Hester.

Hurricanes Harvey, Irma and Maria are estimated to have caused global insured losses totalling $100bn.

RSA said weather-related losses in the third quarter included a £50m provision against U.S. and Caribbean catastrophe events.

"Claims notifications for these (hurricane) events are still developing, and we expect this (50 million pound) provision to increase somewhat", RSA said in a statement, adding that as a result, "group underwriting results are.slightly weaker than prior year".

RSA said it could suffer further losses totalling around £20m in the fourth quarter before reinsurance cover - a backstop for insurance companies - kicks in.

Lancashire reported a pre-tax loss of $136.4m (£104m) for the three months to September 30 after it took a $165m knock from the hurricanes and Mexico earthquakes.

Its losses from Storm Ophelia, which hit Ireland last month, would likely be less than 5 million euros ($5.82 million), Hester added.

And investors seem to be wary about the numbers released this morning - shares were down 2.3 per cent at the time of writing.

RSA, the United Kingdom insurance group reported an 8% rise in year-to-date premiums in the third-quarter, but failed to give a profit figure in its trading statement after hurricanes hit its underwriting performance.

United Kingdom large losses for the first nine months of 2017 are elevated in the marine and global portfolios, which constitute around 25 percent of United Kingdom reported net written premium, and certain United Kingdom domestic broker schemes.



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