Just like a lot of British houses this summer, U.K. insurance stocks are sinking.
The country’s non-life insurers sector had its steepest drop in more than a year-and-a-half on Friday after its biggest constituent, RSA Insurance Group Plc, warned this year’s profit has been hit by unfavorable weather at home and in North America.
Chief Finance Officer Scott Egan said there was an increase in the demands of household rehabilitation as a result of a summer heatwave among RSA’s problems.
. When the ground is set up so much, houses and other buildings begin to move and cracks appear on the walls. Then you should call your insurer, ”says Kevin Ryan, Bloomberg Intelligence analyst. “This is exceptional. We haven’t been here in about 20 years. “
Although the RSA’s annual total pre-tax profit was higher than 2017, the insurer dropped on Friday, corrected by “high air costs”. Claims about the floods in the US in May and the loss of sea in a hurricane in Iowa also contributed to the air problems.
RSA’s shares fell to 9.7 percent in London, the biggest drop since London decided to leave the EU in June 2016. The FTSE 350 Nonlife Insurance Index, including Direct Line Insurance Group Plc and Admiral Group Plc, has dropped. No more than 3.5 percent, the steepest fall since February 2017.
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