The cold snap that brought frost in Europe in the beginning of this year, “ate” almost the entire annual budget of the insurer direct line of weather requirements.
The so-called beast from the East, which fell in late February, dense snow, across the UK and in early March, landed a straight line with about 50 million pounds in claims weather – just below the £55m target for the whole of 2018.
“In frosty weather earlier this year affected many drivers, households and enterprises firmly,” said chief Executive Paul Geddes. “We assess claims related to a major event freeze will use the full annual group budget forecast”.
The company told customers during the cold blast, that there was “snowone like straight lines” to help them battle Arctic storms. Its shares have fallen 3.3 PC today.
Insurers are swallowing the cost of claims from snow and freezing temperatures that hit the UK earlier this year
Direct line, which also owns the Churchill, green flag and the honor of the brand, also said that the end of its relationship with the national and Sainsbury’s saw their home insurance partnerships fall 52pc during the quarter.
However, overall gross premiums of the company rose 5pc to £769.9 m in the three months to March. The insurer, known for its advertising with the image of the Churchill nodding dog and Hollywood star Harvey Keitel.
It was not only the insurer is knocking in the extreme conditions of this winter, which also dented sales. A direct competitor to the line of Hastings warned late last month that his demands are higher than expected as icy and wet conditions further caused the accident.
“We are now sitting in the sun on the South coast, so it feels like the beast from the East has been tamed,” said the boss Hastings Toby van der Meer at the time.