Zurich Financial Services Group announced today that it currently estimates aggregate claims of approximately $295 million for both Zurich North America and Farmers Re relating to the series of severe weather-related events, which hit the U.S. in April and May of this year with a severity and frequency well above past industry experience.
This estimate is net of reinsurance and before tax and will be recorded in the half-year results, which are due to be released on August 11, 2011.
The losses resulted from multiple tornadoes and hail storms, primarily in the Midwest and Southeast regions in the U.S. during the months of April and May. The estimated amount for Zurich’s Commercial and Global Corporate businesses in North America is USD 200 million. The estimated amount for
Zurich’s Farmers Re business is $95 million, reflecting the reinsurance cover provided to the Farmers Exchanges (Exchanges), which are managed but not owned by Farmers Group, Inc., a wholly-owned subsidiary of Zurich.??The Exchanges estimate losses from these events of $400 million, net of reinsurance and tax, a relatively lower amount compared with the overall industry losses and commensurate with their market share in the heavily impacted areas.
Taking these losses into account, the Exchanges continue to maintain their strong surplus position.
“Zurich is committed to delivering against its customer promise”, said Zurich Chief Executive Officer Martin Senn. “In these extreme circumstances the local teams have successfully maintained Zurich’s and Farmers' high level of customer claims service and helped those affected with exemplary and continued dedication.”