Wednesday 20 January 2016 10:34 am
Zurich share price plunges as it warns losses from storms Desmond, Eva and Frank will hit $275m
Zurich Insurance Group today announced estimated losses from storms Desmond, Eva and Frank will hit $275m (£194m). Because of the large amount of payouts the company is expecting to make in relation to flood damage, as well as other recent natural disasters, it also warned of a fall in operating losses for its general insurance business in the fourth quarter of 2015.
Shares in the company dropped after the announcement was made, trading down 8 per cent on the SIX Swiss Exchange at SFr 226.8 around 10am London time.
Zurich is due to release its annual results on 11 February.
Read more: December smashes rain and temperature records
Earlier this month, Direct Line Insurance Group estimated losses from the floods of between £110m and £140m, covering claims across both its home and commercial divisions. However, its share price rose steadily throughout the day after the announcement was made.
Also earlier this month, the Association of British Insurers (ABI) predicted that the total cost of payouts insurers would have to make because of the winter flooding could reach £1.3bn and that nearly £24m worth of emergency payments had already been made.