Tag Archives: cost

Lloyd’s of London estimates Maria claims of $900 mln, cuts Harvey, Irma estimates

Buildings damaged by Hurricane Maria are seen in Lares, Puerto Rico, October 6, 2017. REUTERS/Lucas Jackson

LONDON (Reuters) – Lloyd’s of London estimated net claims of $900 million for Hurricane Maria, which caused devastation in Puerto Rico last month, the specialist insurance market said on Monday.

Lloyd’s also revised down its net claims estimates for hurricanes Harvey and Irma, which hit the United States in recent weeks, to $3.9 billion from initial estimates of $4.5 billion.

Insurers and reinsurers are counting the costs of the three hurricanes, which together with earthquakes in Mexico and wildfires in California, are adding up to a heavy year for natural catastrophe losses.

Lloyd’s said it had already paid $900 million in claims for the three hurricanes.

“We are experiencing one of the most active hurricane seasons this century,” Jon Hancock, Lloyd’s performance management director said.

“While it is clear that these catastrophes will bear a heavy toll, the claims are spread across the entire Lloyd’s market, which has total net financial resources of 28 billion pounds ($36.92 billion).”

Hancock said that while Lloyd’s was cutting its earlier estimates for Harvey and Irma, “this is a developing situation and there continues to be a high degree of uncertainty around any claims estimate”.

 

 

(Reporting by Carolyn Cohn; editing by Maiya Keidan)

 

Italy’s Renzi says August quake caused at least 4 billion euros of damage

Italian Prime Minister Renzi addresses the United Nations General Assembly in the Manhattan borough of New York

ROME, Sept 23 (Reuters) – An earthquake that killed 297 people in central Italy last month caused damage worth at least 4 billion euros ($4.5 billion), Prime Minister Matteo Renzi said on Friday.

Renzi, who is looking for as much fiscal leeway as possible from the European Commission as he prepares his 2017 budget, has said he expects earthquake-related costs to be excluded from the EU’s budget deficit limits.

However, he has remained vague on whether those costs should include only the immediate aid and reconstruction effort for the towns affected, or also costs related to a broader project to make Italy’s buildings more earthquake-resistant.

“We are looking at a minimum of 4 billion euros ($4.48 billion),” Renzi told reporters on Friday in his first estimate of the extent of the damage in the mountain towns hit by the Aug. 24 quake.

He said all money spent on making Italy’s schools earthquake proof would be excluded from EU’s Stability Pact which sets deficit ceilings for the bloc’s members. It remains to be seen whether the EU Commission will agree with this approach.

The government, which will publish new economic forecasts next week, is expected to sharply raise its target for the 2017 budget deficit from the current goal of 1.8 percent of gross domestic product.

Brussels says it has granted Italy “unprecedented” budget flexibility in recent years and is concerned about Rome’s inability to bring down its public debt, the highest in the euro zone after Greece’s as a percentage of GDP.

Renzi has insisted that the EU’S fiscal rules should be relaxed, and has attacked his fellow leaders for failing to
acknowledge that austerity policies have been counter productive.

European Commission President Jean-Claude Juncker said on Thursday Rome had already been given 19 billion euros of “flexibility” in its 2016 budget, in comments widely interpreted in Italy as a signal he may be reluctant to grant much more leeway for next year. ($1 = 0.8919 euros)

(Reporting By Gavin Jones; Editing by Toby Chopra)