UK insurers will withstand flood losses

Recent flood losses will not impact insurers’ ratings, but are expected to erode underwriting profits in this line says AM Best.

According to the rating agency, it does not expect rating downgrades as many UK insurers have international business that performed well in 2013 and there have been increased efforts to strengthen balance sheets and maintain sound capital buffers that exceed requirements for their current rating levels over the past few years.

Current estimates set the insured losses from these events between £750 million and £1.2 billion.