Allianz Insurance saw its profits for the first nine months of the year hit by the £83m cost of weather-related claims in 2007.
The company also announced the creation of a new personal lines division.
The insurer reported third quarter pre-tax profit of £109.4m, down £62m compared to the same period last year.
Its personal lines book went into the red, reporting a combined operating ratio of 112.4%.
The summer floods in the UK are estimated to have cost insurers over £3bn.
The insurer’s chief executive, Andrew Torrance, insisted that the company would have exceeded its performance last year had it not been for the storms and floods.
“While such a hit to our profits is obviously unwelcome, as an insurance company you have to accept that adverse weather events will occur from time to time.”
Net written premiums increased to £1,028.7m from £947m in the third quarter 2006.
Meanwhile, the company has also announced a restructuring operation that will merge its personal and specialty schemes lines into a new retail insurance division.
The new division will comprise of personal lines insurance – both broker and direct – pet, schemes business and legal protection products.
Allianz retail will be led by Jon Dye, who was previously claims director for the insurer. It will write in excess of £600m GWP in 2007.
Allianz would not yet comment on what staff changes may result from the restructuring.
Torrance said: “Allianz retail will provide us with the platform to leverage the capabilities and resources we possess, within the business, to serve our individual customers to best effect from within a single operation.
“Our aim is to grow our personal business substantially and Allianz retail will provide the most effective platform from which to achieve this.