Munich Re, Allianz face millions in flood damage claims

Reinsurer Munich Re is likely to face damage claims of €250 million to €350 million from flooding in central Europe, a bank analyst predicted yesterday, after Allianz pencilled in its own net hit at €350 million.

Credit rating agency Fitch has forecast damage from the floods – the worst in the region since 2002 – could reach €12 billion in Germany alone, of which insurers could cover up to €3 billion. Hundreds of thousands of people in Germany, the Czech Republic and Slovakia have been evacuated from their homes this month as flood waters have swept through countryside and cities, causing factories to halt production.

"We estimate €250-350 million for the floods," JP Morgan analyst Michael Huttner said in a note to clients about Munich Re's exposure, noting the company paid claims of €400 million in 2002.– (Reuters)