Zurich issues estimate of weather-related events in the U.S.
Zurich – Zurich Financial Services Group (Zurich) announced today that it currently estimates aggregate claims of approximately USD 295 million for both Zurich North America and Farmers Re relating to the series of severe weather-related events, which hit the U.S. in April and May of this year with a severity and frequency well above past industry experience. This estimate is net of reinsurance and before tax and will be recorded in the half-year results, which are due to be released on August 11, 2011.
The losses resulted from multiple tornadoes and hail storms, primarily in the Midwest and Southeast regions in the U.S. during the months of April and May. The estimated amount for Zurich’s Commercial and Global Corporate businesses in North America is USD 200 million. The estimated amount for Zurich’s Farmers Re business is USD 95 million, reflecting the reinsurance cover provided to the Farmers Exchanges (Exchanges), which are managed but not owned by Farmers Group, Inc., a wholly-owned subsidiary of Zurich.
The Exchanges estimate losses from these events of USD 400 million, net of reinsurance and tax, a relatively lower amount compared with the overall industry losses and commensurate with their market share in the heavily impacted areas. Taking these losses into account, the Exchanges continue to maintain their strong surplus position.
“Zurich is committed to delivering against its customer promise”, said Zurich Chief Executive Officer Martin Senn. “In these extreme circumstances the local teams have successfully maintained Zurich’s and Farmers’ high level of customer claims service and helped those affected with exemplary and continued dedication.”
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Zurich Financial Services Group (Zurich) is a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets. It offers a wide range of general insurance and life insurance products and services for individuals, small businesses, mid-sized and large companies as well as multinational corporations. Zurich employs about 60,000 people serving customers in more than 170 countries. Founded in 1872, the Group is headquartered in Zurich, Switzerland. Zurich Financial Services Ltd (ZURN) is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt program (ZFSVY) which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.
Farmers is a trade name and may refer to Farmers Group, Inc. or the Farmers Exchanges, as the case may be. Farmers Group, Inc., a management and holding company, along with its subsidiaries, is wholly owned by the Zurich Financial Services Group. The Farmers Exchanges are three reciprocal insurers (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange), including their subsidiaries and affiliates, owned by their policyholders, and managed by Farmers Group, Inc. and its subsidiaries. For more information about Farmers, visit our website www.farmers.com or www.facebook.com/FarmersInsurance.
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