Estimated cost will not affect 2010 combined ratio

RSA expects the recent earthquake in Chile to cost it an estimated £30m in claims.

RSA said it is the leading general insurer in Chile through its wholly-owned subsidiary, Royal & SunAlliance Seguros Chile.

In a statement, RSA said: "Saturday’s earthquake caused widespread damage throughout Chile and, while the situation is still evolving, RSA today announces an estimated cost of around £30m, net of reinsurance, for claims arising from the event."

The insurer added that it does not expect the estimated cost of the earthquake to impact on its plans to achieve a 95% combined operating ratio in 2010.

Paul Whittaker, chief exectuive of emerging markets at RSA said: "At this time our absolute priority is making sure we can service our customers and provide them with whatever support they need. Our thoughts are with all our colleagues, brokers and customers in the region."