Q2 Catastrophe Losses at XL, Zurich Tied to EU Flood, U.S. Storms

The second-quarter catastrophe losses of insurers Zurich and XL Group total more than $400 million, with Zurich shouldering the largest share.

Zurich says catastrophe losses amounts to $278 million, split between floods in Europe and severe storm damage in the U.S.

The Switzerland-based company says floods in Central and Eastern Europe amounted to approximately $140 million in loss. The European flooding was the worst in the region in more than a decade, causing extensive damage along the Danube and Elbe main watersheds in May and June.

Two severe tornadoes that hit Oklahoma City Metropolitan area in the U.S. in May will cost approximately $138 million. The losses will be borne by both its Zurich North America and Farmers Re groups.

Zurich's estimates are net of reinsurance and before tax.

Dublin, Ireland-based insurer XL Group says second quarter natural catastrophe losses could amount to approximately $135 million. The company's estimate is pretax and net of reinsurance and reinstatement premiums.

XL says approximately 55 percent of the loss belongs to its insurance company and its reinsurance segment will share 45 percent of the loss.

Losses contributing to this estimate include flooding in Europe, Argentina and Canada, and tornadoes and hailstorms in the United States. The largest of these events, European flooding, accounts for approximately half of the estimate.

XL cautions that the estimate is preliminary and involves the exercise of considerable judgment. The carrier adds that there is “considerable uncertainty” associated with the numbers and it is subject to revision as facts are still developing.