Storms across Europe during 2000 are expected to impact on the returns of Britain’s three largest insurers when they report their annual results this week. Analysts say lower returns than forecast are likely.

Market leader CGNU took a $4.2 billion loss on the sale of its US general insurance business in September, but is nevertheless expected to report a pre-tax operating profit of about $4 billion.

Royal & SunAlliance is said by analysts to have been able to offset its heavy storm losses against the upturn in the rate cycle. The third-largest British insurer, Legal & General, is expected to generate an operating profit of about $1.3 billion.