Claims payments related to UK floods not to exceed $400m (£197m)

Zurich Financial Services Group has said that based on its current best estimate it expects aggregate claims payments related to storms and floods that occurred in the UK during June 2007 will not exceed $400m (£197m).

This estimate is net of reinsurance. The period of extreme weather was from 14 June to the end of June with a peak loss suffered in the Sheffield, Doncaster and Hull areas on 25 June.

Charges will be recorded in the half year results 2007, which are due to be released on 16 August.

Zurich said: “While the amount represents our best estimate of the ultimate cost for these events, the nature of many of the losses and the extended remediation period needed to dry out properties and to complete repairs means that some uncertainty as to the final cost remains.

“The recent floods that occurred in southern England in July are an additional significant loss event, but at this stage it is too early to provide an estimate of the claims cost to be expected for Zurich.

"A charge for the July floods will be recorded in the third quarter results.”