Aviva profits swamped by flood claims in UK

Norwich Union insurer Aviva today said annual profits growth stalled in the wake of claims relating to the UK’s turbulent year for weather.

The group’s general insurance arm posted a 39% fall in operating profits to £1.03bn (€1.3bn) in 2007, reflecting £475m (€622m) of losses stemming from storms in January and the worst UK floods for 60 years in the summer.

The drop offset a 35% improvement in profits at the company’s life and pensions division. Overall, Aviva’s operating profits were 1% higher at £3.29bn (€4.3bn), a figure slightly ahead of recently revised City expectations.