And it could be even higher because of the extent and duration of flooding
Insurance losses from the UK floods could reach £1.2bn ($2m), according to asset management company Credit Suisse.
In a statement to investor DCG Iris, Credit Suisse said: “Early estimates expect insurance losses to top £1 billion (around $1.7 billion).
“While we believe this to be a reasonable first estimate, our analysis and assessment gives a higher insured loss, possibly reaching $2 billion or higher, given the extent and duration of the flooding.”
Earlier this week Deloitte said the flood bill could reach £1bn by April if the rains continue into March or April.
And accountancy firm PwC revised up its forecast for the cost of the floods in December and January from £400m to £500m after taking into account the January weather.
The ABI estimates that the flooding that occurred between 23 December and 8 January alone will cost insurers £426m.
More rain predicted
The UK Met Office has said it expects more normal unsettled winter weather with still more rain to come, but much less than has been experienced over the last weeks.
But given the high groundwater levels, some areas can be expected to remain flooded for weeks.
Large parts of the UK have experienced the wettest December and January on record, with heavy rainfall continuing into mid-February.
The high rainfall has left the ground saturated and groundwater levels are much higher than usual.
As a result, several of England’s major rivers have burst their banks, including the Thames, the Severn and the (Dorset) Stour.
More than 120 flood warnings have been issued across the UK. In addition, high spring tides and large waves caused by strong winds have caused damage in coastal areas.
Credit Suisse said the master fund that DCG invests in has some exposure to UK flood risk.
But it added that, based on the fund’s level of exposure and the industry loss estimates, Credit Suisse did not expect an impact on its assets.