Global insurance carrier Allianz is expecting gross losses of approximately €900 million from the impacts of storm Bernd in Europe, of which it anticipates around €500 million will be covered by its reinsurance.
Storm Bernd arrived in Central Europe in July and most of its damage came from flooding caused by a number of major rivers overflowing following extreme levels of rainfall.
The low pressure system sat over Central Europe for five days, impacting parts of Belgium, the Netherlands, and Switzerland, although Germany remains the worst affected region.
Previously, Allianz Deutschland said that it expects claims of at least €500 million from just the flooding in Germany.
Speaking earlier this morning, Allianz’s Chief Financial Officer (CFO), Giulio Terzariol, offered an update on the company’s experience, revealing that gross losses of €900 million for storm Bernd had already been reported.
After reinsurance and reinstatement premiums, Allianz expects that its net loss from the impacts of storm Bernd will be approximately €400 million, which means the insurer is expecting around €500 million of reinsurance recoveries from this loss event.
As we wrote earlier this week, the storm also pushed Italian insurer Generali to trigger its per occurrence reinsurance coverage, while AXA warned of losses of €400 million from storm Bernd, net of reinsurance.
Reinsurance giant Hannover Re said recently that it expects to incur net losses of between €200 million to €250 million from the storm and flooding, while Swiss Re has warned of losses in mid-triple single digits.
Catastrophe risk modeller AIR has said that in Germany alone, losses from the flooding could reach as much as €5 billion.
While the German Insurance Association said previously that insurance and reinsurance industry losses in Germany from the event would be between €4.5 billion and €5.5 billion.