2nd Aug 2007 12:30
Aviva PLC02 August 2007 News release 2 August 2007 IMPACT OF THE JULY UK WEATHER EVENT ON AVIVA Following the July floods in Gloucestershire and the surrounding areas, Avivaplc ("Aviva") estimates the cost of this event, and reinsurance to limit thecosts of future similar events in the UK, to be in the region of £165 million.These costs will impact the group's general insurance results in the second halfof the year. The priority for Aviva's UK general insurance business, Norwich Union Insurance,continues to be helping those impacted by these devastating events through anexceptionally difficult time. A network of loss adjusters, contractors andclaims teams is on site at all flood areas to assess the full extent of thedamage. Call centre staff numbers have been doubled to deal with the extracalls. A fully equipped mobile advice centre has been sent to Gloucestershire,manned by claims and repair specialists, to provide practical help and advice ondealing with the aftermath of homes and businesses being flooded. Work alsocontinues in the north of England following the floods in June. Igal Mayer, chief executive of Norwich Union Insurance said: "Having visitedGloucestershire myself, I've witnessed at first hand the traumatic and emotionalimpact the floods have had on our customers. We're bringing in additionalcontractors and specialist equipment to ensure repairs are carried out asquickly as possible, and we're in discussions with local authorities to find thebest solution to providing temporary accommodation for those who have had toleave their homes. We will continue to do everything we can to help ourcustomers affected by these devastating events return to normal as soon aspossible. " The initial cost estimate of £175m for the June floods remains unchanged. WhilstAviva remains fully committed to a group COR target of 98% due to theexceptional nature of the recent bad weather claims in the UK in 2007 there is adegree of uncertainty concerning Aviva's ability to meet the group target in2007. Aviva has exercised its reinsurance option to limit the maximum cost offuture similar events in the UK this year to £110m, the cost of which isincluded in the estimate of £165 million above. - ends - Enquiries: Media Hayley Stimpson, director of external affairs +44 (0)20 7662 7544 Sue Winston, head of group media relations +44 (0)20 7662 8221 James Murgatroyd/Ed Simpkins, Finsbury +44 (0)20 7251 3801 Analysts Charles Barrows, investor relations director +44 (0)20 7662 8115 Amanda Wilbraham, senior manager, investor relations +44 (0)20 7662 2111 Notes to editors: • Aviva is the leading provider of life and pensions to Europe withsubstantial positions in other markets around the world, making it the world'sfifth largest insurance group based on gross worldwide premiums at 31 December2006. • Aviva's principal business activities are long-term savings, fundmanagement and general insurance, with worldwide total sales of £41.5 billionand assets under management of £364 billion at 31 December 2006. • The Aviva media centre at www.aviva.com/media includes images, companyand product information and a news release archive. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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