Japanese insurer MS&AD has incurred expected gross losses of 66 billion yen (US $594.3 million) following Japan’s historic flooding in July 2018, which caused widespread property damage across the southwest of the country and left 225 people dead.
MS&AD said that the loss estimate, which was calculated on information available at July 31, comprised 13 billion yen of voluntary automobile losses, 50 billion of fire and allied/other losses, and 3 billion of marine losses.
The company revealed the loss estimate in its Q2 results report and stated that it “will affect our financial results in or after the six months ended September 30, 2018.”
However, it added that the total loss estimate had not yet factored in the amount recoverable from reinsurance, and said that it expected the loss to “have limited impact on our financial results.”
MS&AD also listed the total amount of paid and outstanding claims as 22 billion yen (US $198.0 million) at July 23, which represented claims related to policies underwritten by Mitsui Sumitomo Insurance (MSI) and Aioi Nissay Dowa Insurance (ADI).
The 22 billion yen of paid and outstanding claims comprised 6.1 billion of voluntary automobile claims, 15.8 billion of fire and allied/other claims, and no marine claims, MS&AD said.
Many regions of Japan experienced up to three times the total average rainfall for July in a matter of days during the flooding, with 364mm recorded in just two hours in Uwajina.
Experts attributed the unusually heavy rainfall to the remnants of a typhoon feeding into a seasonal rainy front, which was exacerbated by an influx of humid warm air from the Pacific.