Floods to trigger 35% RSA profit drop - analyst

RSA is in line for a 35% fall in operating profits following the UK floods and two Italian earthquakes.

The wet weather this summer will cost RSA £40m net of reinsurance, and the earthquakes around £35m, leading to a 96% combined ratio, says analyst firm Investec.

RSA will also have to cope with a 15% fall in investment income as a result of lower bond yields and volatility in the markets.