Insurer puts wider cost at $4bn

SCOR has estimated that it faces a bill of about €50m ($66.7m) for severe German hailstorms in June this year.

SCOR estimated the wider insured loss to be about $4.01bn.

Hailstorm Andreas was the most costly, estimated to cost SCOR roughly $45.4m.   

The storms mainly affected property and motor lines of business, mainly in north-eastern areas of Westphalia, Lower Saxony and Baden-Württemberg.

SCOR said that these events looked set to be the most expensive German hail loss for many years, exceeding the 1984 Munich event, which cost the industry about $1.34bn (adjusted for inflation).

SCOR Global P&C chief executive Victor Peignet said: “While these storms will likely add a further dynamic for the German market renewals at 1/1, we see this cost as being within SCOR’s expectations in terms of our share of the industry loss and our robust representation of frequency perils in Europe from a planning and capital modelling perspective.”

The $66.7m figure is after retrocession and reinstatements, but before tax.