INSURANCE claims due to damage caused by extensive flooding and freezing weather affected first-quarter results of the General Accident insurance group leading to a 50 per cent decline in profits to £55 million sterling. European figures were hit by adverse weather affecting Ireland.

But underlying trends "remain encouraging". Lower general insurance results were partly offset by a 25 per cent increase in life profits, partly due to first-time contributions from Provident Mutual. The financial results were better-than-anticipated and GA shares ended 21p higher at 654p in London.