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Norsk Hydro claims a further $20.2mn from its cyber insurance in Q4

7th February 2020 - Author: Luke Gallin

Aluminium manufacturing giant Norsk Hydro has announced that during the fourth-quarter of 2019, it recognised NOK 187 million (USD 20.2 million) of insurance compensation in relation to the cyber-attack on its operations in March, 2019.

NorskThe firm detected unusual activity on its servers that disabled part of its smelting operations, leading Norsk Hydro to isolate all plants and operations and switched to manual operations and procedures.

At first, Norsk Hydro said that the attack could cost as much as USD 41 million, with this figure jumping to USD 52 million and then to USD 69 million at the start of June.

The firm then said that the cyber-attack was likely to have a financial impact of up to NOK 650 million (USD 75 million) in H1 2019, noting that the majority of the operational challenges and financial losses hit its Extruded Solutions unit.

Norsk Hydro later revealed that during the third-quarter of 2019, it had recognised NOK 33 million (USD 3.6 million) in insurance compensation, with additional compensation expected to be recognised “when deemed virtually certain.”

Now, the aluminium manufacturer has provided a further update on the event, stating that for the full-year 2019, the financial impact of the cyber-attack is expected to be around NOK 650-750 million (approximately USD 70-80 million at today’s exchange rate).

“Hydro has robust cyber insurance in place with recognized insurers,” explains the firm, adding that it has “recognized NOK 187 million insurance compensation in the fourth quarter with the majority reflected in Extruded Solutions result.”

Again, Norsk Hydro adds that further compensation will be recognised when deemed virtually certain.

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