Bad weather hits insurer

An increase in the number of weather related insurance claims has trimmed profits at the UK insurance group Royal and Sun Alliance.

The group made an operating profit of £160m in the first three months of the year, compared with £163m in the same period in 2001.

It made a pre-tax loss of £72m, compared with £311m last time.

The company said the beginning of 2001 was benign in term of weather related claims.

But in January and February this year claims in the UK, Scandinavia, Germany and Ireland were higher than usual.

After cold weather and storms at the beginning of the year, claims in the UK increased by £30m.

But group chief executive Bob Mendelsohn said, apart from the bad weather, the company had made an encouraging start to the year.

"The prospects for the rest of the year remain positive," he added.