Insurers are set to pay 300-500 million pounds (about US$480-800 million) to cover UK claims related to damage caused by the St Jude's Day storm, Willis Re estimates, keeping profits intact despite the human cost.
Northern Europe was battered by hurricane strength winds on Monday, killing more than a dozen people and causing widespread disruption as power lines and transport links were cut by falling trees.
The figure falls far short of having a material impact on profits for the insurance industry which operates in the context of absorbing losses from Atlantic hurricanes which commonly amount to billions of dollars.
Eamonn Flanagan at Shore Capital Stockbrokers said insured losses would have to reach at least 1 billion pounds before firms with large market share in home insurance such as RSA or Direct Line saw their profits affected.
“There is no getting away from the human tragedies but this wasn't 1987,” he said, in reference to a storm which killed 18 people, felled millions of trees and caused insured losses of more than 2 billion pounds in today's terms.
Tim Edwards, Executive Director, Willis Re UK, said damage from Monday's storm was comparable to 'Windstorm Kyrill' in 2007. Insured losses from Kyrill were 370 million pounds in today's terms, data from the Association of British Insurers shows.
“Losses from the storm were concentrated predominantly in the South of England, with significant damage coming from fallen trees – which were heavily laden with leaves because of the time of year – fallen tiles and smashed windows,” Edwards said.
A spokeswoman for insurer LV, which insures more than 500,000 British homes, said it saw an eightfold increase in calls compared to a “usual Monday” and more than 750 new claims registered as a result of the storm.
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