Allianz raises European flood loss estimate to €1.1bn

Allianz raises European flood loss estimate to €1.1bn

Global insurance coverage and reinsurance group Allianz has raised its quote for gross losses from storm Bernds impacts in Europe and the extreme flooding that struck the region by 22% to EUR1.1 billion.Previously, Allianz had actually pegged its losses from the European floods at EUR900 million, a figure that it stated would be reduced considerably through a major reinsurance recovery.
Allianz had said that it anticipated its excess-of-loss reinsurance tower would be activated by the flooding claims which majority of the gross loss concern would be recovered, with its bottom line set to be minimized to around EUR400 million.
Its most likely that despite the fact that the gross loss has actually risen by 22%, the net impact to Allianz could remain roughly the very same, indicating that the companies reinsurance healing could now be as much as EUR700 million, although we can not be specific of this as Allianz has actually not divulged a fresh net loss figure.
The EUR1.1 billion includes losses suffered by Allianz Global Corporate & & Specialty (AGCS).
Allianz expects that around EUR700 countless the flood losses will be from Germany, the country worst affected by the rains and flooding from Bernd.
AGCS expects more than EUR100 million of claims from clients in Germany and the Benelux, the company said.
Allianz noted that it paid out EUR917 million for claims from the Elbe flooding in 2002, that including price increases could be as much as EUR1.76 billion today.
” Depending on which worth you use for the 2002 flood, the worth then or the existing worth, Ilse or Bernd is the biggest event so far in the whole history of Allianz,” explained Thorsten Fromhold, Head of Portfolio Management & & Retrocession at Allianz Re.
Flood occasions like the one seen in Europe in July are expected to happen more frequently due to the fact that of environment modification, Allianz said.
Katherine Wenigmann, natural catastrophe (NatCat) threat expert at Allianz Re, commented, “We understand that a warmer atmosphere can hold more water vapor and that heavy rainfall occasions will occur more often. According to the most current research, environment modification can trigger some low-pressure systems to stall and stay over a region, leading to large quantities of precipitation over a relatively short period of time.”
With large reinsurance recoveries set to be made by the most significant insurance providers in the area, European reinsurance renewal rates are expected to come under pressure to rise at 1/1 2022.

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