Aviva profits hit by floods

Norwich Union owner Aviva unveiled an 8% fall in operating profits today as the cost of flooding in the UK offset strong growth elsewhere in the business.

Aviva said its loss from the flooding, which it described as “the worst floods in living memory”, reached £235m (€347m) by the end of June, causing operating profits at its UK general insurance arm to slide by 50% to £284m (€420m).

The group also warned that it will incur a hit of around £165m (€244m) for the flooding in the Midlands and south of England last month.

Overall group operating profits slipped from £1.7bn (€2.5bn) last year to £1.54bn (€2.27bn) in the six months to June 30, slightly below analysts’ forecasts of £1.56bn (€2.3bn).