Zurich, SCOR release loss estimates from Europe floods, U.S. tornadoes

Zurich Insurance Group estimates its losses from flooding in central and eastern Europe to be about $140 million, while losses from severe tornadoes in the United States could be nearly as much.

For Zurich North America and Farmers Re together, losses from the tornadoes that devastated the Oklahoma City metropolitan area in May could reach $138 million, the company said. 

The estimates are net of reinsurance and before tax and will be recorded in the group’s half-year results, which are due to be released on August 15. 

The estimated amount for Zurich’s North America Commercial and Global Corporate in North America businesses is about $52 million.

For Zurich’s Farmers Re business, it expects a loss of approximately $86 million, reflecting the reinsurance cover provided to the Farmers Exchanges, which are owned by their policyholders and managed by Farmers Group Inc., a wholly-owned subsidiary of the Group.

Meanwhile, SCOR has estimated net pre-tax losses from recent flooding in Europe at 80 million euros after retrocession and reinstatements.

“While it will be some time before the loss is fully adjusted, SCOR’s estimate is based largely on information provided by our clients, supplemented by analysis of underlying exposure in the affected areas,” its statement said.

“SCOR sees the insured loss for the industry in the 3 to 3.5 billion euros range with an associated return period of loss around 15 to 25 years for Europe.”