Insurance giant Aviva, the company behind Norwich Union, has estimated that it will have to fork out around £175million in insurance claims following the floods in June.
Tens of thousands of people have already put in claims for flood damage, and there are still many more yet to claim; Aviva is now preparing for a massive payout.
In a statement on its own website, Aviva said: “Following the recent floods in parts of northern and central England, Aviva plc ("Aviva") estimates the cost of claims relating to these floods to be in the region of £175 million, which will impact the group's general insurance results in the first half of 2007.
“This initial estimate is subject to uncertainty, particularly in relation to average claim costs, and does not include allowance for further claims that could arise should this current spell of bad weather continue.
“Aviva remains committed to meet or beat a combined operating ratio of 98%.”
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