Reinsurance News

Norsk Hydro expecting $69m hit from cyber attack

6th June 2019 - Author: Charlie Wood

The cyber attack that hit aluminium manufacturing giant Norsk Hydro in March could cost the company as much as $69 million over the first two quarters of 2019.

NorskNorsk Hydro had previously disclosed that it expected to lose between NOK400 million and NOK450 million (US$46 million and $52 million).

According to an investor report released by the company, the overall financial impact of the cyber attack in the first quarter is estimated at between NOK 300 and 350 million ($35 million and $42 million), and between NOK 200 and 250 million ($23 million and $29 million) for the second.

The company says operations and sales have recovered successively during the quarter, reducing the incremental financial impact accordingly.

Hydro says it has a robust cyber insurance in place with recognised insurers, but has not yet recognised any insurance compensation. The company says this will be recorded when deemed virtually certain.

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Norsk Hydro also previously confirmed that its cyber insurance policy does include business interruption cover.

The attack is suspected to be a form of ransomware called LockerGoga, which utilises an unusually disruptive hacking approach that can cause “chaos” for the industrial firms that it targets, according to cyber experts.

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