Swiss Re Puts Sandy Loss at $900M

Swiss Re puts its claims burden from Superstorm Sandy at approximately $900 million.

But in a statement issued today, the Zurich-based reinsurer said its estimate “is subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted.”

The $900 million is net of retrocession and before tax.

Matthias Weber, group chief underwriting officer, notes that the storm, which made landfall on the densely populated Northeast coast on Oct. 29, “led to prolonged power outages, disruption to public transport and damage to other infrastructure that have made recovery efforts very difficult. It also complicates the loss assessment process. Our claims estimate therefore is subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted.”

The carrier also notes that before striking the United States Sandy struck the Caribbean and the Bahamas.

“Swiss Re extends its sympathies to the families, communities and businesses affected by Hurricane Sandy, and especially to those who have lost loved ones and livelihoods in the storm,” says Michel Liès, group CEO. “Swiss Re will support our clients and partners in tackling this challenging situation, as we have done in so many instances in the past.”

Last week, Tower Group said that it expects losses from Superstorm Sandy after-tax net loss between $55 million to $68 million.

Allstate issued a statement on Nov. 15 said its losses will exceed $150 million, but cautioned that a full estimate could not be made at that time.

Progressive put a loss estimate from catastrophe losses in October, including $55 million for Sandy.

AXA Art says it expects a record loss of $40 million for losses in the Chelsea Art district.