GERMANY – Underwriting losses predicted for Germany

Regionally focused German insurers may incur underwriting losses for the year from an accumulation of natural catastrophes, a report from AM Best has stated. 

As well as the windstorm, Germany was also affected by hailstorms in July and August resulting tin estimated losses of EUR2.7 billion. 

Yvette Essen, industry research director Europe and emerging markets, said: “For German insurers that write the majority of their business locally, with a concentration in property lines, these accumulated losses may cause companies to exceed their catastrophe budgets significantly. Depending on their level of reinsurance protection, these companies may post large underwriting losses for the year and could experience erosion in equity capital.” 

For AM Best-rated companies, losses from the windstorm are expected to be well within most insurers’ catastrophe budgets.