UK floods impact higher than expected

Aviva plc has reported total sales growth of 25% in 2007 to 38.6 billion (approximately Cdn$56.7 billion).
Damage losses arising from the floods in the United Kingdom during June and July were originally estimated to be 340 million (approximately Cdn$500 million), bringing the total expected adverse weather costs in 2007 to 400 million (Cdn$587 million). However, after review, the estimate rose to 475 million (Cdn$698 million), according to a release.
“Following the exceptional weather conditions in the U.K. in June and July last year, our general insurance business helped more than 45,000 households and 6,000 businesses get back on their feet after the floods,” Andrew Moss, group chief executive at Aviva, said in a release. “The costs of these events will be higher than we first estimated and, as expected, the floods have had an impact on the group’s full year COR.
“I’m pleased to say that without these exceptional claims we would have achieved a [combined ratio] of 95%, some 3% better than our ‘meet-or-beat’ target.”
Aviva’s North America business delivered record full-year sales, up 39% to 3.6 billion (Cdn$5.3 billion).
“This is an excellent result representing growth across all product lines,” the release notes. “We continue to be optimistic in our outlook for growth in 2008 and remain on track to double the size of our business within three years of the acquisition of the former AmerUs Group completed in late 2006.”