Global disaster losses of $37 billion so far this year says Swiss Re
Economic losses from natural and man-made disasters hit U$37 billion in the first half of 2015 according to preliminary sigma estimates from Swiss Re. The global reinsurer says that the insurance sector covered almost 45 per cent of those losses amounting to $16.5 billion; the ten-year average is 27 per cent. There was also a surge in the human cost of disasters with 18,000 deaths, up from 4,800 in the first half of 2014. Earthquakes in Nepal and a heatwave in India and Pakistan claimed the highest numbers of victims.
Weather incidents were the biggest costliest natural disasters for insurers with storms in the US and Europe leading. The winter storm in the northeast US resulted in the single largest loss of the year so far at $1.8 billion. Although the insurance industry’s exposure to natural disaster losses was higher, the economic losses overall were lower; down from $54 billion in the first half of 2014 to $33 billion in the first six months of 2015. Man-made disasters accounted for an additional $3.6 billion.
Wells Fargo auctions crop insurer
Wells Fargo’s crop insurance business may be divested according to Reuters. Rural Community Insurance Services is one of the largest of its kind in the US and is likely to fetch $1 billion or more. The bank has launched an auction for the business and says that it may result in a sale but that the brokerage part of its crop insurance operations would not be part of the sale.
Pension firms announce merger
Two large UK annuity specialists have agreed a merger following government pension reforms last year. Just Retirement and Partnership Assurance will join together in an all-share deal which will see Just Retirement shareholders take 60 per cent of the new firm and Partnership investors holding 40 per cent. The tie-up creates a business with a market value of £1.7 billion (U$2.65 billion.) Commenting on the effect on the market John Baines of
Aon Hewitt said: “As with any merger, there is a risk of reduced competition driving up prices. However, in this case, that risk is likely to be mitigated by the new entrants that are poised to enter the market imminently, by the increased interest of traditional insurers in using medical data to sharpen their pricing, and also by the need to retain a competitive pricing basis relative to traditional insurers.”
