Hailstorms in Germany prompt preliminary cost estimate of 50 million euros for SCOR

SCOR Global P&C has issued a preliminary cost estimate of approximately 50 million euros for the series of hailstorms in Germany this past July, just a month after the country was hammered by severe flooding.

The estimate is after retrocession and reinstatements and before tax, notes a press release issued Monday by the global reinsurer. SCOR reports cedants in Germany suffered losses in the series of damaging hailstorms, principally comprising Andreas and Ernst on July 27 and 28, which alone is estimated at about 34 million euros for SCOR’s share.

The hailstorms affected property and motor lines of business, the company notes, adding that “these events look set to be the most expensive German hail loss for many years, exceeding the 1984 Munich event which cost the industry around 1 billion euros (on an inflation-adjusted basis).”

SCOR currently expects that the industry’s insured losses for the series of hailstorms to be in the region of 3 billion euros, although the reinsurer emphasizes the estimate is still preliminary.

“While these storms will likely add a further dynamic for the German market renewals at 1/1, we see this cost as being within SCOR’s expectations in terms of our share of the industry loss and our robust representation of frequency perils in Europe from a planning and capital-modelling perspective,” says Victor Peignet, CEO of SCOR Global P&C.