Catastrophes could hike property/casualty insurance prices in Germany

A railway line is flooded by Elbe water near Schoenhausen, Germany, 12 June 2013. / AP Photo

A series of natural catastrophes may push the combined ratio of the German property/casualty insurance industry above 100% for 2013, possibly resulting in rate increases, according to a report by Standard & Poor's Corp.

Severe flooding in June and hailstorms in July are among the highest-ever insured losses of their kind seen in Germany, according to the report “A Cluster of Natural Catastrophe Claims Could Put Underwriting Profitability in German Property-Casualty Insurance on Pause,” released Tuesday.

According to the report, the events could prompt rate increases to help bolster profitability in the sector in 2014-2015.

S&P said it maintained a stable outlook on the German property/casualty industry, as most insurers would be able to absorb losses from the recent catastrophes, among other factors.

The report is available to subscribers to S&P's ratings direct service or to purchase by calling 212-438-7280 or emailing research_request@standardandpoors.com.