ARCTIC December weather in Britain has hit Royal Insurance for £40 million sterling. The insurance group said the freezing conditions in December cost £40 million as part of a doubling of subsidence and weather related losses during 1995.

Worldwide, weather related losses grew by £104 million to £282 million.

General British insurance business profits fell from £321 million to £235 million, which Royal said was a "good achievement" in view of the higher weather losses.