Posted on 26 Nov 2012 by Neilson
Swiss Re estimates its claims burden from Hurricane Sandy at around $900 million, net of retrocession and before tax. This estimate is subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted.
Hurricane Sandy, which made landfall in the US on 29 October 2012, caused high winds and storm surge, resulting in extensive flooding and loss of life and property. Before it hit the US, Hurricane Sandy affected the Caribbean and The Bahamas.
"Swiss Re extends its sympathies to the families, communities and businesses affected by Hurricane Sandy, and especially to those who have lost loved ones and livelihoods in the storm," says Michel Liès, Group Chief Executive Officer. "Swiss Re will support our clients and partners in tackling this challenging situation, as we have done in so many instances in the past."
Swiss Re estimates its claims burden to be around $900 million, net of retrocession and before tax. This estimate is subject to change as the claims assessment process continues. Overall market losses are estimated at a range of $20-25 billion.
"The hurricane hit the densely populated North-East coast of the US," says Matthias Weber, Group Chief Underwriting Officer. "This led to prolonged power outages, disruption to public transport and damage to other infrastructure that have made recovery efforts very difficult. It also complicates the loss assessment process. Our claims estimate therefore is subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted."