Swiss Re estimates its claims for winter storm Kyrill to be in the region of EUR 140 million

26 January 2007, Zurich

Based on preliminary estimates, Swiss Re expects its claims for winter storm Kyrill, net of the benefits of its successful hedging strategy, to be modest at approximately EUR 140 million before tax.

Swiss Re estimates that the European winter storm Kyrill could cost the insurance industry up to EUR 3.5 billion. However, Swiss Re's strict underwriting selection and successful hedging strategy result in the company expecting its own net claims to be modest at approximately EUR 140 million before tax (gross claim estimate EUR 220 million reduced by various protections in place of EUR 80 million).

The low pressure system that gave rise to winter storm Kyrill formed on 15 January 2007 over Newfoundland. It made first landfall on 18 January in Ireland and the United Kingdom before moving to Continental Europe. While the peak wind speeds were generally far lower than Lothar in 1999 which cost the industry EUR 5.5 billion in today's currency, Kyrill covered a much broader area with strong gales, affecting large areas of the United Kingdom and Germany, along with neighbouring countries in Continental Europe. Warnings published in advance of the storm helped to limit the fatalities which, at 47 reported deaths - is significantly below the 110 fatalities caused by Lothar.

Notes to editors

Swiss Re is the world's leading and most diversified global reinsurer. The company operates through offices in over 30 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company's traditional reinsurance products and related services for property and casualty, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated "AA-" by Standard & Poor's, "Aa2" by Moody's and "A+" by A.M. Best.

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