Hannover Re Gustav Losses Around $146 Million

Wilhelm Zeller, Chief Executive Officer of Hannover Re, indicated, in a meeting at the recent Reinsurance Rendezvous in Monte Carlo, that industry wide losses from hurricane “Gustav”, would be in the range of $1.5 to $8 billion.

“The total amount can be broken down into around $1.5 to $4 billion for offshore business, i.e. oil rigs and drilling platforms in the Gulf, as well as up to $4 billion for onshore business, namely the insured property damage on land,” he indicated.

He said that Hannover Re expects a “net strain” of less than €100 million [$146 million]. “This burden of losses still puts us well within our catastrophe loss budget”, Zeller affirmed.

The bulletin noted that Hannover Re “earmarks 10 percent of its anticipated net premium in non-life reinsurance for this purpose, i.e. roughly €400 million [$583 million] for 2008.”

Source: Hannover Re – www.hannover-re.com