The insurer says these potential claims are within its budget for the year
Direct Line Group has estimated extreme weather claims costs to be in the realm of £40m in its trading update for the first quarter of 2022, published yesterday (4 May 2022).
The claims projection is for storms Dudley, Eunice and Franklin and stands in comparison with an early estimate of between £30m to £40m, across both home and commercial.
However, Direct Line said this was within its weather budget assumption of £73m for the year.
Storms Dudley, Eunice, and Franklin were the three named storms that hit the UK in the space of a week during February 2022.
According to the Met Office, two red weather warnings were issued for storm Eunice, four people died due to falling trees and more than a million homes were left without power across several days. It also ripped the roof of London’s O2 Arena, causing 90s Hip Hop band, The Fugees to cancel a scheduled concert during their 25th anniversary tour.
Meanwhile, storm Dudley saw thousand of homes lose power in Cumbria, Yorkshire and Lancashire.
Lastly, storm Franklin brought persistent heavy rain causing significant flood warnings in England, Wales and Northern Ireland.