Floods in central Europe last month may cost insurance companies $3.5-4.5 billion, only half of one previous estimate but more than was paid out for the last major washout in 2002, the world's second biggest reinsurer said on Monday.

The forecast from Swiss Re compares to an earlier warning from a damage modelling agency that losses could top $8 billion. That, and its estimate of a $300 million hit for its own results, saw shares in Swiss Re and some other sector firms rise.

The flooding in early June forced Czech soldiers to erect metal barriers and pile up sandbags to protect Prague's historic centre after days of heavy rains swelled rivers and forced evacuations from low-laying areas.

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