Massive total for flood claims

11th February, 2008

The Summer flooding during 2007 has caused Aviva to add a further £75 million to the cost of claims, bringing the total up to £475 million. Aviva owns Norwich Union and is Britains largest insurer. It has issued warnings about the growth of long term savings products in the UK it blames the uncertainty of the economy. Its shares fell by 2.13% to 597p, the lowest point since November 2004.

Aviva estimates a total bill of £400 million to cover the cost of flood damage from the floods last June and July as 45,000 households and 6,000 businesses claimed against their policies. It wasn't all bad for the books at Aviva as their other product sales increased. Its total sales for last year for long term savings products such as life insurance and pensions rose by 6 per cent to £14.4 billion, a growth of between 5 to 10%. Stronger growth than predicted in Asia Pacific, up by 60%, pushed the company's worldwide sales up by 25% to £38.58 billion.

 

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