Flooding could hurt insurers' profit targets

This month’s flooding in the UK could cause insurers to miss their profitability targets, analysts warn.

Aviva and RSA are the two most at risk due to their large UK home and commercial property books, says Marcus Barnard from Oriel Securities.

Previous weather conditions had worsened combined ratio by 3 to 6 points he percentage points he noted.

The 2007 floods cost insurers around £3bn and led to around 10% rate hikes in home insurance.