Hannover Re, Converium Expect Minimal Flood Losses

Many analysts expect that the floods in Eastern Europe could end up costing the continent’s insurers as much as $3 billion, but two leading reinsurers, Hannover Re and Converium, both issued statements yesterday indicating that their expected losses would be minimal.

According to a report from Dow-Jones Newswire, a Hannover spokesman commented that while the overall economic losses were “devastating,” only a portion of them were insured. The company saw no reason to change its earnings estimates on account of the recent disaster. Analysts expect Hannover’s claims exposure to be in the $60 million range.

The DJ article quoted Converium CEO Frank Schaar as expressing support for the company’s clients in the stricken areas, but he also indicated that, “Based on current information we believe the financial impact of this event will remain within the bounds of normal catastrophe loss activity that we support every year.” Analysts estimate Converium’s exposure to be in the $30 million range.