Insurer says costs could continue to rise
Following the recent floods in parts of northern and central England, Norwich Union (NU) has estimated that the cost of recent flood claims is in the region of £175m.
This follows the ABI's estimate that the flooding could cost the insurance industry over £1bn.
In a statement NU said: "[This] will impact the group's general insurance results in the first half of 2007.
"This initial estimate is subject to uncertainty, particularly in relation to average claim costs, and does not include allowance for further claims that could arise should this current spell of bad weather continue."
Norwich Union is the largest household insurer in the UK, accounting for almost a quarter of the market.
The insurer added that it remained committed to meeting a combined operating ratio of 98%.
