Direct Line estimates UK flood losses at £110m

Losses from the UK floods alone could cost Direct Line up to £110 million, despite annual estimates for major weather losses predicted at £80 million.

The group expects between £70 and £90 million in home claims and a further £20 million of claims in its commercial division.

“Recent UK weather events have emphasised the importance of insurance,” said Paul Geddes, CEO of Direct Line Group. “I am proud of our people who have been working tirelessly around the clock to assist customers affected by the floods and storms, both on the phones and on the ground.”

The estimate was announced in the insurer’s annual results which saw the company increase its pre-tax profits by 41 percent to £423.9 million in 2013 compared with £249.1 million in 2012.