is spokesman of Deutsche Rück and head of our Communications Department
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Düsseldorf, 4 August 2021 – After the devastating heavy rainfall and flooding caused by low-pressure system known as “Bernd”, particularly in North Rhine-Westphalia and Rhineland-Palatinate, and later in south-eastern Bavaria and parts of Saxony, Deutsche Rückversicherung AG (Deutsche Rück) has produced an initial loss estimate. The leading reinsurer for public insurers currently expects a moderate net loss of 40 to 50 million euros.
"Based on initial claims and our own modelling, as one of the largest reinsurers on the German market we are taking a corresponding hit from the effects of storm Bernd," says CEO Frank Schaar. The bulk of the gross loss comes from public insurers. They are strongly represented in the affected areas. Deutsche Rück therefore currently estimates its gross loss at between 180 and 230 million euros. "Thanks to our retrocession structure, which is tailor-made for such events, we expect a net loss of 40 to 50 million euros after relief from our reinsurance cover,"says Schaar.
"In view of our solid asset base, we estimate the net loss impact on our company to be moderate," Schaar adds. According to rating agency Standard & Poor’s, Deutsche Rück has a strong capital base at AAA level. It also has a high Solvency II coverage ratio of 249.9 % as at 30 June 2021.
Schaar continues: "Our thoughts are especially with the relatives of victims and people who are missing. We are truly appalled that so many people are having to endure suffering and loss, so I am all the more grateful to our staff for their donations and for using their paid leave to lend a hand and provide practical help in the disaster area."
Frank Schaar, Chief Executive Officer