Zurich puts figure on Katrina cost
Insurance group Zurich Financial Services today estimated claims following Hurricane Katrina would cost it in the region of £342m (€506m).
The Swiss firm said the provisional figure was less than the £450m (€660m) to £500m (€736m) on claimed after the September 11 attacks in New York.
And it added that although the final amount could change, the cost of Gulf of Mexico storm was expected to be within plans made for the hurricane season.
A Zurich spokesman said: “It is a figure that we can manage well and it is not a shocking figure.
“It is within the plan we had for the year. We have to make contingencies for hurricanes every year and it is not a figure outside of that.”
In a statement today, the company said claims adjusters were only recently given access to areas hit by Katrina and the figure was only an estimate.
Zurich said: “The task of estimating Katrina claims payments at this stage involves considerable judgement calls.
“The many reasons include the sheer scale of destruction in Alabama, Louisiana and Mississippi, complex loss adjustment issues, the enormous clean up and restoration efforts, as well as widespread and potentially long-lasting business income loss.”
Zurich is the latest insurer to put a figure on the cost of Hurricane Katrina, and added that claims were likely to be registered in the third quarter.
Last month, Lloyds of London estimated its losses would be £1.4bn (€2.06bn).
Just as Zurich did today, the company said it was a figure the insurance market was well able to absorb.
Among other European re-insurers, Swiss Re recently doubled its estimate of potential losses from Katrina, warning it expects claims in the region of £650m (€957).
Some analysts believe the total damage cused by Katrina could cost the insurance industry around £35bn (€51bn).
