Operating profits stand at £255m
Royal Bank of Scotland Insurance (RBSI) saw its half year operating profit fall by 27% as a result of the June floods.
The bank reported operating profits for its insurance arm of £255m for the first six months of the year, compared to £351m in 2006. The flooding in June cost the bank £125m, it said.
Excluding the flooding, operating profit would have grown by 8%.
Total income for the division grew by 3% to £2,843m, driven by “good growth” in its own-brand business, but partially offset by a decline in partnership business.
Income from own-brand business grew by 7%, while income from partnerships and brokers fell by 1%. It said it had not renewed a number of large rescue contracts.
RBSI said total in-force motor policies increased to 6.8 million.
It added that it had pursued a strategy of increasing premium rates to offset claims inflation and had improved profitability by implementing heavier increases in higher risk categories.