Swiss Re estimates its claims from central Europe floods at $300 million

Major reinsurer Swiss Re has estimated it will have around $300 million in claims from the recent major flooding in central Europe.

That estimate (in U.S. currency) is net of retrocession and before tax, the company said Monday. It also expects industry-wide insured losses from the flood events to be between $3.5 billion and $4.5 billion.

“The flooding in central and eastern Europe has again caused hardship and loss to many communities and we send our sympathies to those affected,” Michel M. Liès, Swiss Re’s group CEO noted in a statement.

“Swiss Re will continue to work closely with our partners and clients to ensure that people receive the financial support they need to clean up and rebuild after this flood.”

The flooding affected large areas in Germany, the Czech Republic, Austria, Hungary and Slovakia. However, “effective local prevention measures spared many regions from large losses,” Swiss Re said, including in Prague, where mobile flood barriers were used to prevent flooding in most of the city.

“Thanks to timely prevention measures, large areas have been saved from the flooding. With the right prevention measures in place, insurers can offer more affordable coverage, which means that more people and businesses can benefit from insurance,” noted Matthias Weber, Swiss Re’s group chief underwriting officer.

Rating agency A.M. Best Co. has also said that the insurance industry is well-positioned to take on losses from the events.