Damage Claims Due To Sandy Storm By Zurich Insurance Group Ltd (ADR)(PINK:ZURVY) Reaches $700 – AIG and TRV

by Loventrice Farrow | Wednesday, Dec 19, 2012 | 445 views

The assessment put forward by Zurich Insurance Group Ltd (ADR)(PINK:ZURVY) for the possible damage claims in the United States in connection to Sandy Storm that took place due to a western Caribbean Sea’s tropical wave on October 22, 2012 is $700 million for its earnings in the fourth quarter.

Besides much adverse impact on the entire human life in the United States, this storm has led the insurers into a deep sea of trouble and concern. There are many of the insurance companies that are anticipating a lot of monetary loss due to enormous damage claims.

On Monday, there was a proclamation made by the Swiss insurers which besides other things, stated that it has the anticipation of restoring around $58 million premium which are owed on the covers of reinsurance. Further to this, there was no more elucidation done by the company. It is expected to testify its earnings of the quarter on February 14.

The Sandy Storm has had devastating effects. On October 29, the storm had killed 132 people together in Canada and United States. The people had to manage with the situations that they would have never come across before. There were instances of power cut outs in a large span of an area, the public transport was abruptly interrupted, and there was an enormous smash up of the overall infrastructure in the entire surrounding.

American International Group, Inc. (NYSE:AIG), one of the topmost insurers in the United States, mentioned that due to the storm it is anticipating heave losses which may mount up to $1.3 billion. This estimate of loss is for the actual post-tax amount. The Travelers Companies, Inc. (NYSE: TRV) arrived at a figure of approximation to about $650 million of claims due to damages incurred because of the Sandy Storm which will increase their load. This is a post-tax estimation. Also, the pre-tax estimate arrived at by the Swiss Re is $900 million of burden due claims that shall be made for the harm effected by the storm.

With the upsetting and distressing upheaval that has been brought in by the unexpected Super storm Sandy, it is projected to be the subsequent costliest disaster in the history of the United States after the much devastating misfortune caused – Katrina in 2005. The estimation of the insured losses due to Sandy storm has gone up to an extreme count of $25 billion.

The shares of American International Group, Inc. (NYSE:AIG) were up by 1.57% to close at $35.50.
The shares of Travelers Companies, Inc. (NYSE:TRV) were up by 0.19% to close at $74.33
The shares of Zurich Insurance Group Ltd (ADR)(PINK:ZURVY) were down by 0.11% to close at $26.28.

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