Insurance giant RSA has warned that last week’s storms in northern Europe would hit profits, sending its shares tumbling 6.27 per cent.

RSA said costs from the storm, dubbed “Christian”, as well as those from floods in Canada would mean “full year weather losses . . . materially above planning assumptions”.

Full-year figures will also be affected by a surge in bodily injury claims in the Irish motor insurance market, although the firm said the financial impact remained unclear at this stage.

Premiums in Ireland were up 5 per cent to £291 million with growth in its 123 and commercial divisions. RSA said it had succeeded in pushing through strong increases in the cost of motor insurance – 13 per cent year-on-year in the month of September – “in response to the deteriorating bodily injury trends”. – (Reuters/PA)