Hannover Re anticipates only moderate losses from hurricane "Gustav"
Hannover, 8 September 2008:
Wilhelm Zeller, Chief Executive Officer of Hannover Re, took the opportunity at a press breakfast in Monte Carlo to give an early indication of the scale of losses from hurricane "Gustav", which swept across the Gulf of Mexico and Louisiana at the end of August. The relevant international modelling agencies estimate that the storm caused insured losses in the range of USD 1.5 to 8 billion. The total amount can be broken down into around USD 1.5 to 4 billion for offshore business, i.e. oil rigs and drilling platforms in the Gulf, as well as up to USD 4 billion for onshore business, namely the insured property damage on land. A reliable estimate of the exact loss amount will probably only be possible in a few weeks' time.
Against this backdrop Hannover Re expects a net strain of less than EUR 100 million. "This burden of losses still puts us well within our catastrophe loss budget", Mr. Zeller affirmed. Hannover Re earmarks 10% of its anticipated net premium in non-life reinsurance for this purpose, i.e. roughly EUR 400 million for 2008.