Bloomberg News

Swiss Re Estimates Claims From Thai Floods at $600 Million

December 07, 2011

(Updates with analyst comment in fourth paragraph.)

Dec. 6 (Bloomberg) -- Swiss Re Ltd., the world’s second- biggest reinsurer, estimates insured claims from the flooding in Thailand at $600 million.

“The impact of this flood on the Thai economy and the companies that operate there is likely to be significant and could last some time,” said Brian Gray, chief underwriting officer at the Zurich-based reinsurer. “The floods have forced the closure of several major industrial estates.”

Thai Prime Minister Yingluck Shinawatra said on Dec. 3 that all areas of Bangkok will be free from flooding by the end of the month after northern and central Thailand experienced their highest rainfall in 50 years. The total insured market loss from the flooding, which claimed at least 657 lives, could be as much as $11 billion, Swiss Re said.

“The claim is higher than expected and is not yet finished” because of the complex loss assessment, said Fabrizio Croce, a Zurich-based analyst with Kepler Capital Markets. “We have to expect more claims, some potentially also delayed in 2012.”

Swiss Re dropped as much as 1.6 percent in Zurich trading and was down 0.7 percent at 49.36 Swiss francs as of 9:01 a.m. That valued the firm at 18.3 billion francs ($19.7 billion)

--Editors: Dylan Griffiths, Jon Menon.

To contact the reporter on this story: Carolyn Bandel in Zurich at cbandel@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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