Insurers count the cost of flooding

The insurance industry has begun to count the cost of the recent flooding. This week the ABI upped the estimated total cost of claims to £1.5bn. Residential claims are predicted to run to £825m, while commercial claims are estimated at £680m.

Norwich Union (NU) estimated that the cost of recent flood claims is in the region of £175m. It said it would impact the group's general insurance results in the first half of 2007, but warned that it did not take into account any further claims. NU added that it remained committed to meeting a combined operating ratio of 98%.

Royal & SunAlliance (R&SA) estimated that claims from the flooding would amount to £55m, net of reinsurance recoveries. But it said it would not affect its full year guidance, adding that it continued to expect a combined operating ratio of better than 95% for 2007.