Swiss reinsurer Converium has issued the following statement concerning expected losses from Hurricane Katrina and from the floods that ravaged Switzerland, Austria and other European countries in August.
“Based on an expected insured industry loss of around US$ 25 billion, Converium estimates gross losses from hurricane Katrina to be in the range of US$ 10 – 20 million. This loss amount is reflective of Converium’s reduced exposure in North America as a result of placing Converium Reinsurance (North America) Inc. into run-off as well as the decision to write North American business from Zurich on a selective basis only.
“For the August flooding caused by heavy precipitation in many areas of Central Europe, especially Switzerland, Southern Germany and Austria, Converium estimates gross losses to be in the range of US$ 15 – 30 million. This loss amount is in line with Converium’s market position in Central and Southern Europe.
“The estimated losses for hurricane Katrina and the European flooding will add 1.5 to 3.0 percentage points to Converium’s combined ratio for 2005.”
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