Insurance Helvetia expects millions in losses from storms in Spain

According to preliminary estimates, Helvetia Insurance expects its subsidiaries Helvetia Seguros and Caser to incur claims costs in the mid single-digit million euro range following the severe weather in Spain.

Last week, heavy rainfall in the east and south of Spain caused devastating damage and claimed more than 200 lives. Particularly in the region around the major city of Valencia, major damage was caused to properties, vehicles and in the form of business interruptions. According to initial market estimates, the total damage is likely to exceed the billion euro mark.

A large part of the damage is covered by the Spanish public storm insurance solution "Consorcio", Helvetia announced on Wednesday in response to an inquiry from AWP. The Group also emphasized that it is still very early to make estimates, as many losses have not yet been reported or could not yet be reported.

Helvetia significantly expanded its activities on the Iberian Peninsula around three years ago with the takeover of Spanish insurer Caser. According to Helvetia, the market share of Helvetia Seguros and Caser in the non-life business in the province of Valencia was around 3 percent at the end of 2023.

Zurich Group unlikely to be affected

The Zurich Group and reinsurer Swiss Re have not yet provided any information on the level of claims in Spain. It is still too early to estimate the losses caused by the recent natural disasters, a Swiss Re spokeswoman told AWP.

Analysts at Bank Vontobel assume that Helvetia is likely to be hit harder than Zurich by the Spanish storm. Zurich has only a low exposure in the property and casualty business in Spain, they said in a commentary on Wednesday.

With regard to Swiss Re, Vontobel analyst Simon Fössmeier expects the storms to boost demand for reinsurance cover and have a positive impact on prices.

SDA