Munich Re the global reinsurer has forewarned that the losses in its property and casualty reinsurance sector from main events came in above average for the first quarter of 2021, largely due to the severe winter weather in the US in February
The German insurance company is the newest to comment on the significant impacts of winter storms Uri and Viola in the US, particularly in Texas State in February.
While Munich Re does not offer an estimate of losses from the event, it published that during Q1 2021, “Major loss expenditure in property and Casualty insurance sector was higher than the usual, largely owing to an unusually severe cold weather in the USA, especially in the state of Texas.”
Presently, the majority of carriers that have informed on the impacts of the storm on their processes ahead of Q1 results, have based their estimates on an insurance commerce loss of between $15 billion to $16 billion.
Along with the expenditures of natural catastrophes events during the quarter, Munich re has also said that both fields of its reinsurance business were disturbed by losses related to the ongoing global pandemic, even though these were in line with probabilities.
Munich Re had reported losses of more than €4.1 billion due to COVID-19 as of the end of 2020.