Swiss Re announced that its estimates of claims from Hurricane Sandy are around $900 million, net of retrocession and before tax. The bulletin warned, however, that “this estimate is subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted.”
Hurricane Sandy made landfall on the east coast of the U.S. on October 29, producing high winds and a storm surge that resulted in “extensive flooding and loss of life and property.” Before striking the U.S. the storm also affected the Caribbean and The Bahamas”.
Swiss Re’s Group CEO Michel Liès stated that the reinsurer “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,” adding that “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 estimated that overall market losses are in a range of $20 to $25 billion. Matthias Weber, Group Chief Underwriting Officer, noted that the “hurricane hit the densely populated North-East coast of the US. This led to prolonged power outages, disruption to public transport and damage to other infrastructure that has 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.”
Source: Swiss Re