October 18 2004
Zurich Financial Services Group (Zurich) expects aggregate claims payments related to four recent Atlantic hurricanes of approximately USD 525 million before tax and net of reinsurance. This corresponds to approximately USD 400 million after tax and net of reinsurance. Charges for these events will be recorded in the third quarter.
James J. Schiro, Chief Executive Officer of Zurich Financial Services, said: "Reacting to the tragedy caused by this exceptional series of storms was our first duty. Our next step was to estimate the claims payments. As a Group, it is our job to build the quality of earnings and balance sheet strength to be in a position to absorb the cost of claims payments arising from catastrophe events such as these."
The current estimate of potential claims is based on model calculations and reported claims. The estimate pertains to hurricanes Charley, Frances, Ivan and Jeanne that struck the Caribbean and the United States between August 10 and September 27, and it includes the claims estimate previously released for hurricane Charley.
According to recent estimates, claims payments for the four storms are likely to exceed USD 20 billion for the insurance industry. This exceeds the former record payment for hurricane Andrew in 1992. Insured losses from Andrew were USD 15.5 billion or roughly USD 20 billion in today’s dollars.
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Zurich Financial Services is an insurance-based financial services provider with a global network that focuses its activities on its key markets in North America and Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. Zurich has offices in more than 50 countries and employs about 62,000 people.
For further information please contact:
Media and Public Relations
Phone: +41 (0)1 625 21 00, Fax: +41 (0)1 625 26 41, E-mail: media@zurich.com
Investor Relations
Phone: +41 (0)1 625 22 99, Fax: +41 (0)1 625 36 18, E-mail: investor.relations@zurich.com
Zurich Financial Services
Mythenquai 2, P.O. Box, 8022 Zurich, Switzerland
http://www.zurich.com
SWX Swiss Exchange/virt-x: ZURN
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