PartnerRe provides initial estimates for flood losses in Europe, Alberta

PartnerRe Ltd. has released estimates and preliminary estimates for the costs of the June floods in Europe and Alberta, respectively, which combined, amount to $95 million to $120 million.

PartnerRe estimates the cost of the European floods in June will be between $50 million and $60 million pre-tax and net of retrocession and reinstatement premiums, while the preliminary estimate for the recent Alberta floods is $45 million to $60 million, the global reinsurer noted in a statement Monday.

PartnerRe’s loss estimates are based on information received to date from the company’s cedants, as well as analysis of the company’s exposures, supplemented by other loss estimation capabilities, the statement notes.

With the Alberta floods being in late June, “the timing of the event and the devastation in Calgary and surrounding areas, there is substantial uncertainty regarding the extent of the losses,” the reinsurer adds.

PartnerRe notes that these losses will be recorded in the company’s 2013 Q2 results. While the majority of these losses is expected to impact the company’s catastrophe sub-segment, it will also affect other non-life sub-segments.

The company is scheduled to release second quarter and six-month 2013 results following the market close on July 29, 2013.

“There is considerable uncertainty associated with any loss estimate, which in this instance, is further complicated by the inherent uncertainties related to flood events. The ultimate loss, therefore, may differ materially from the current estimate,” the company reports.