Allianz cedes ~€700m of flood losses to reinsurance

Allianz cedes ~€700m of flood losses to reinsurance

Global insurance coverage and reinsurance group Allianz confirmed that the severe flooding in Europe in July has resulted in a EUR400 million operating earnings effect to its results today, suggesting around EUR700 million of flood losses were recovered from its reinsurance partners.Allianz had formerly exposed its gross losses from the flood would be around the EUR1.1 billion mark, with reinsurance likely getting the bulk for the business.
Todays results show that throughout the third-quarter Allianz suffered a EUR659 million hit to its operating benefit from natural disaster events.
The European flooding was the biggest catastrophe event for the insurer, driving EUR400 countless the feline losses for the quarter.
Typhoon Ida drove another EUR100 million, with the rest from a variety of storm and hail occasions throughout Europe.
Overall it was a 4.9% nat cat concern for Allianz in the quarter, while non-cat weather condition losses amounted to another 1.3%.
Despite these major losses, Allianz reported a 93.9% combined ratio for its residential or commercial property and casualty service, an enhancement on the previous years 96%, in spite of the catastrophe loss burden being higher.
Allianzs reinsurance program has played a significant function in moderating the effects of Q3 2021 catastrophe loss events for the insurer, particularly for the European floods.
It also appears most likely Allianz has actually tapped its reinsurance for cyclone Ida as well, as despite its lower concentration of exposure in the United States, a EUR100 million loss is extremely small for a company of its size.
Naturally, Allianz will also have actually had exposure to Ida through the service it fronts for reinsurers and third-party capital partners, consisting of ILS fund supervisors, so its possible more of that loss streamed through these arrangements to other sources of capital.
Allianzs P&C system reported an operating revenue of EUR4.158 billion for the very first nine-months of 2021, far better than the prior years EUR3.49 billion, in which its reinsurance protection has plainly played a role.
The AGCS system experienced a strong unfavorable effect from NatCat, however this was partially compensated by lower weather big and related losses along with improved underlying loss ratio, Allianz said today.

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