Global insurer Generali revealed this morning that it has tapped into its reinsurance arrangements to help pay for natural catastrophe claims from the first-half of the year and that it expects to do so again for its share of the European flood losses from July.
Generali reported EUR 218 million of net natural catastrophe claims for the first-half of 2021, higher than the previous years EUR 118 million.
These catastrophe losses impacted Generali’s P&C business and came from severe storm Filomena that impacted Spain in January, as well as the severe storms, convective weather and floods that affected central Europe in the month of June.
Generali has a EUR 100 million per-occurrence cap on retained losses from catastrophes before its reinsurance program kicks in to support its paying of claims.
The company said that the storms in Europe in June, which largely affected the region from June 19th to 25th, were one event that saw it reach its reinsurance trigger.
In addition, Generali provided some guidance on what it expects from the more recent severe flooding across Europe and in particularly Germany in July.
The July flooding is set to be one of the largest catastrophe events in recent years in Europe, with ramifications for all of the major insurance and reinsurance firms.
Insurer Allianz said that it expects EUR 500 million of flood losses from the impacts in Germany, a figure that suggests the carrier could receive some reinsurance support.
In addition, insurer AXA said that it estimates that losses from July’s floods that hit Germany, Belgium, and other parts of Western and Central Europe, will be around EUR 400 million, which it reported before tax and net of expected reinsurance recoveries.
Generali said today that it believes its losses from the July flooding event will be capped at EUR 100 million by its per-occurrence reinsurance arrangements.
The majority of the July flood losses are from Germany, Switzerland and Austria, as Generali doesn’t have exposure in Belgium or the Netherlands.
Which suggests Generali’s net loss from the flood event will be lower than other global players it competes with, perhaps reflecting the benefit of decisions made in structuring its reinsurance program arrangements.