By John Revill
ZURICH-- Zurich Insurance Group (ZURN.VX) Thursday said it
expects losses in the region of $140 million related to the
extensive damage caused by floods in central and eastern Europe
earlier this summer.
The company said it also anticipated losses of approximately
$138 million for both its North America and Farmers Re businesses
from the two severe tornados which hit the Oklahoma area in the
south west of the U.S. in May.
The estimates, which are net of reinsurance and before tax, will
be recorded in the company's half-year results, which are due to be
released on Aug. 15, the company said.
The losses in Central and Eastern Europe come after the worst
flooding in the region in more than a decade. Extensive damage was
recorded along the Danube and Elbe in May and June 2013.
Earlier this month Swiss Re (SREN.VX), the world's second
largest reinsurer, said the total cost for insurance companies
related to the flood in central Europe was likely to be between
$3.5 billion and $4.5 billion.
Swollen rivers caused deadly floods in Germany, including
Passau, the Czech Republic, Austria, Hungary and Slovakia, killing
at least 19 people.
Zurich said the estimated amount for its North America
Commercial and Global Corporate in North America businesses is
approximately $52 million, while its Farmers Re business faced a
loss of around $86 million.
The tornado may have caused as much as $3.5 billion in insured
losses, according to disaster-modeling company Risk Management
Solutions Inc.
The firm said the massive twister damaged as many 20,000
buildings and completely destroyed between 4,000 and 5,000. At
least 24 people died, and more than 230 people injured in the
disaster.
Write to John Revill at john.revill@dowjones.com
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