UK Floods Repair Bill Estimate Soars to £1.2bn

Ratings agency Fitch has predicted that the Britain's repair bill for the mass flooding across the country will reach £1.2bn.

After the UK experienced the wettest winter on record, Fitch delivered a forecast that trounced previous estimates and that Britain's biggest insurance companies will bear the brunt of costs, which will have a "limited negative effect" on earnings.

"This view recognises that the insurers are typically large, well-diversified players with the ability to offset losses through other profitable lines and to capitalise on price increases post-event thanks to strong capital levels," added Fitch in an analyst note.

Accountancy giant, Deloitte, previously estimated that flooding repair bills could reach £1bn (€1.2bn, $1.7bn).

The UK government said that households have already received £14m in emergency payments since 23 December and those who are unable to go home have been placed in temporary accommodation for the cost of £24m, so far.

Meanwhile, the Association of British Insurers said claims linked to the storms and mass flooding hit its highest level in a decade.