L&G says GI hit by floods and Flood Re levy


Legal & General reported first half general insurance operating profit fell to £31m from £38m a year earlier.

General insurance combined operating ratio worsened to 85% from 82% in the first half last year, though it was an improvement on the full year 2015 COR of 89%.

Gross written premiums for the GI business fell to £156m in the first half from £164m a year ago.

L&G said first half GI profit was hit by June’s floods, which cost £5m, and the introduction of the annual Flood Re levy of £9m, which added 6 percentage points to the first half COR.

The company said it “maintained pricing discipline in a competitive market” in the first half.