Wind and flood claims cost insurer £40m
Legal and General reported a £38m operating loss for its general insurance business in the first half of 2007. This compared to a profit of £2m in the same period in 2006.
The insurer said this was due to increased household claims following windstorm Kyrill in January, which gave rise to £8m in claims, and two flooding events in June this year, giving rise to estimated claims of £40m net of reinsurance.
It added that the final impact of the severe flooding from 20 July 2007 has not yet been quantified. “Early indications suggest that it could give rise to claims of the order of £30m net of reinsurance in the second half of 2007,” it said.
L&G said other operating profit for the first half of 2007 included a profit of £6m following its decision to withdraw from the healthcare market earlier in the year.
