THE combination of the severe winter and 1995's hot summer meant British insurance companies had to fork out £218 million sterling more to home owners in the first quarter of 1996 than in the corresponding period last year.

The Association of British Insurers (ABI) said theft claims had been down slightly, fire claims up a little, but claims resulting from bad weather and subsidence had jumped sharply. "The main factor in these disappointing first quarter results is the freezing conditions in the early days of 1996, with the effect of last year's hot summer still coming through in the form of subsidence claims," said ABI director general Mr Mark Boleat.