Swiss Re estimates its claims burden from Hurricane Sandy at around USD 900 million
26 November 2012, Zurich
- Swiss Re estimates its claims burden from Hurricane Sandy to be around USD 900 million, net of retrocession and before tax
- Total insured losses estimated between USD 20 - 25 billion
- Estimates are affected by complex loss assessments, especially in business interruption coverage, and are subject to significant uncertainty
Swiss Re estimates its claims burden from Hurricane Sandy at around USD 900 million, net of retrocession and before tax. This estimate is subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted.
Hurricane Sandy, which made landfall in the US on 29 October 2012, caused high winds and storm surge, resulting in extensive flooding and loss of life and property. Before it hit the US, Hurricane Sandy affected the Caribbean and The Bahamas.
"Swiss Re extends its sympathies to the families, communities and businesses affected by Hurricane Sandy, and especially to those who have lost loved ones and livelihoods in the storm," says Michel Liès, Group Chief Executive Officer. "Swiss Re will support our clients and partners in tackling this challenging situation, as we have done in so many instances in the past."
Swiss Re estimates its claims burden to be around USD 900 million, net of retrocession and before tax. This estimate is subject to change as the claims assessment process continues. Overall market losses are estimated at a range of USD 20 - 25 billion.
"The hurricane hit the densely populated North-East coast of the US," says Matthias Weber, Group Chief Underwriting Officer. "This led to prolonged power outages, disruption to public transport and damage to other infrastructure that have made recovery efforts very difficult. It also complicates the loss assessment process. Our claims estimate therefore is subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted."
Notes to editors
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients. From standard products to tailor-made coverage across all lines of business, Swiss Re deploys its capital strength, expertise and innovation power to enable the risk-taking upon which enterprise and progress in society depend. Founded in Zurich, Switzerland, in 1863, Swiss Re serves clients through a network of over 60 offices globally and is rated "AA-" by Standard & Poor's, "A1" by Moody's and "A+" by A.M. Best. Registered shares in the Swiss Re Group holding company, Swiss Re Ltd, are listed on the SIX Swiss Exchange and trade under the symbol SREN. For more information about Swiss Re Group, please visit: www.swissre.com or follow us on Twitter @SwissRe.
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- the cyclicality of the reinsurance industry;
- uncertainties in estimating reserves;
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- mortality, morbidity and longevity experience;
- policy renewal and lapse rates;
- extraordinary events affecting Swiss Re’s clients and other counterparties, such as bankruptcies, liquidations and other credit-related events;
- current, pending and future legislation and regulation affecting Swiss Re or its ceding companies, and the interpretations of legislation or regulations by regulators;
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- changing levels of competition; and
- operational factors, including the efficacy of risk management and other internal procedures in managing the foregoing risks.
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