2012 catastrophe, disaster losses to reach $65 billion: Swiss Re
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Insured losses from natural catastrophes and man-made disasters likely will reach about $65 billion this year, Swiss Re Group said Wednesday.
The Zurich-based reinsurer said despite a benign first half of the year for natural catastrophes, second-half events including Superstorm Sandy and drought in the United States would result in total economic losses of at least $140 billion.
Insured losses for 2012, however, are less than the $120 billion seen in 2011 as a result of earthquake and flood losses in the Asia Pacific region and South America, among other disasters, Swiss Re said.
The most costly insured catastrophe losses in 2012 all occurred in the United States, according to Swiss Re's research.
Superstorm Sandy, which hit the U.S. East Coast in October, is expected to result in insured losses of $20 billion to $25 billion, it noted.
Drought in the United States during the summer caused about $11 billion in insured losses, while severe storms and tornados in March caused insured losses of $2.5 billion, Swiss Re said.
Storms and tornados in April caused a further $2.3 billion in insured losses, Swiss Re noted, while the Mid -Atlantic and Midwest Derecho storm caused about $2 billion in insured losses in July.
