Hurricanes hit UK insurer RSA’s results
(Reuters) — Hurricanes blew insurer RSA’s underwriting performance off course in the third quarter as it set aside an initial £50 million pounds ($66 million) for weather losses in the United States and the Caribbean.
Hurricanes Harvey, Irma and Maria have caused more than $100 billion in insured losses in the region in recent weeks, hitting the performance of insurers and reinsurers.
Swiss Re Ltd. and Lancashire Insurance Services Ltd. reported losses on Thursday as a result of the hurricanes and other recent natural catastrophes.
“Claims notifications for these (hurricane) events are still developing, and we expect this (£50 million provision to increase somewhat,” RSA said in a statement, adding that as a result, “group underwriting results are … slightly weaker than prior year."
It did not give profit figures in its third-quarter trading statement, but said group profits were ahead of last year, though by less than it had targeted.
RSA’s shares were down 1.9%, making it one of the worst performers in the FTSE 100 index .
RSA, which also offers international insurance through its U.K. division, was not expecting “material losses” from wildfires in California or earthquakes in Mexico, Chief Executive Stephen Hester told a media call.
Its losses from Storm Ophelia, which hit Ireland last month, would likely be less than €5 million ($5.82 million), Mr. Hester added.
RSA could suffer further large losses totaling around £20 million in the fourth quarter before its reinsurance cover kicks in, Chief Financial Officer Scott Egan told the call.
RSA posted net written premiums of £5.1 billion for the first nine months, up 8% on a year earlier.
