Zurich Financial Services Group (Zurich) announced that based on preliminary estimates it expects the impact of the floods in Thailand, the increased cost of the earthquakes in New Zealand, and the further benefits of recoveries from its global aggregate catastrophe reinsurance cover in total, for the fourth quarter 2011, to range between USD 200 – 250 million. A specific estimate will be included in the Annual Results 2011 which are due to be released on February 16, 2012.

Thailand experienced the strongest monsoon rainfalls for decades starting in July 2011 and lasting for several months. The heavy rainfalls caused floods in northern and central Thailand reaching their peaks in October and early November 2011 and affecting both major residential and industrial areas.

The Christchurch region in New Zealand was hit by a major earthquake in February 2011 followed by several aftershocks in the course of the year. Initial losses were recorded in the first and second quarters 2011. In anticipation of more restrictive requirements and new building codes which may impact reconstruction costs, along with further quakes and aftershocks, there has been an USD 80 million increase in the estimated cost of these events.

Given the exceptional frequency and overall severity of catastrophes and significant weather related loss-events throughout 2011, including the events mentioned above, cumulative losses have triggered the Group’s global aggregate catastrophe reinsurance cover with additional recoveries of USD 130 million.

While these amounts represent Zurich’s current best estimate of the cost for the above events, the nature of many of the losses and the extended remediation period to complete repairs means that uncertainty as to the final cost remains.

via Zurich assesses impact of floods in Thailand and revises estimate of earthquakes in New Zealand.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

How to Establish a Branch Office in Thailand

Establishing a branch office in Thailand can be more complex, costly, and timely when compared to incorporating a private limited company. However, the advantage of a branch office is that it can be 100 percent foreign-owned.

Asia-Pacific: Companies face rising credit risks despite shorter payment delays

Coface’s 2022 Asia Corporate Payment Survey, conducted between November 2021 and February 2022, provides insights into the evolution of payment behaviour and credit management practices of about 2,800 companies across the Asia Pacific region during another pandemic year.

APAC region records 119% QoQ growth in M&A deal value in Q2 2022

India, Australia and China were the top three countries when measured in terms of M&A deal value in Q2, with India accounting for half of the top 20 deals. South Korea, Indonesia, Malaysia, and Japan were the next top countries that contributed to a surge in M&A deal value.