SCOR issues cost estimate for the series of Hailstorms in Germany
Press Release
16 September 2013
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SCOR issues cost estimate for the series of Hailstorms in Germany
SCOR issues a preliminary cost estimate for the series of Hailstorms in Germany
of approximately EURÂ 50Â million, after retrocession and reinstatements and
before tax.
Following the June flooding in the country, cedants in Germany suffered losses
in the series of damaging hailstorms principally comprising Andreas and Ernst.
Andreas, which occurred on 27 and 28 July, is the most significant of these
hailstorms, estimated at about EURÂ 34Â million for SCOR's share.
Affecting Property and Motor lines of business, mainly in north-eastern areas of
Westphalia, Lower Saxony and Baden-Württemberg, these events look set to be the
most expensive German hail loss for many years, exceeding the 1984 Munich event
which cost the industry around EUR 1 billion (on an inflation-adjusted basis).
Due to the timing of these events during the holiday season for both insureds
and cedants, adjusted loss information has taken longer than usual to emerge.
SCOR currently expects the industry's insured losses for the series of
hailstorms to be in the region of
EUR 3 billion, although this estimate is still preliminary, particularly for
Ernst.
Victor Peignet, CEO of SCOR Global P&C, comments: "While these storms will
likely add a further dynamic for the German market renewals at 1/1, we see this
cost as being within SCOR's expectations in terms of our share of the industry
loss and our robust representation of frequency perils in Europe from a planning
and capital modelling perspective."
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Forward-looking statements
SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC)
Regulation n°809/2004 of the European Commission. Thus, any forward-.looking
statements contained in this communication should not be held as corresponding
to such profit forecasts. Information in this communication may include
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other factors, which may cause actual results, on the one hand, to differ from
any results expressed or implied by the present communication, on the other
hand.
Please refer to SCOR's Document de référence filed with the AMF on 6 March 2013
under number D.13-0106 (the "Document de référence"), for a description of
certain important factors, risks and uncertainties that may affect the business
of the SCOR Group. As a result of the extreme and unprecedented volatility and
disruption of the current global financial crisis, SCOR is exposed to
significant financial, capital market and other risks, including movements in
interest rates, credit spreads, equity prices, and currency movements, changes
in rating agency policies or practices, and the lowering or loss of financial
strength or other ratings.
The Group's financial information is prepared on the basis of IFRS and
interpretations issued and approved by the European Union. This financial
information does not constitute a set of financial statements for an interim
period as defined by IAS 34 "Interim Financial Reporting".
SCOR Press Release:
http://hugin.info/143549/R/1729497/577841.pdf
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