Wednesday 26 September 2018

Emma trounces Ophelia as FBD counts €8m cost of snowstorm

A cow looks out from a destroyed barn on Karl Winters' farm in Taghmon, Co Wexford, following destruction caused by Storm Emma Photo: Gerry Mooney
A cow looks out from a destroyed barn on Karl Winters' farm in Taghmon, Co Wexford, following destruction caused by Storm Emma Photo: Gerry Mooney
John Mulligan

John Mulligan

Insurance firm FBD has estimated that the damage wreaked by this month's snowstorm will cost it between €6m and €8m.

The net cost of Storm Emma to FBD, the only insurer listed on the Irish Stock Exchange, is more than the €5.4m in net claims it paid out after Storm Ophelia in October, after the ex-hurricane hurtled across the country causing widespread destruction and leaving three dead.

Storm Emma brought the worst snowfall seen in Ireland since 1982.

"Storm Emma has resulted in significant property damage and we have been working with our customers to compensate them for the damage caused to their homes, farms and businesses," said FBD yesterday.

It added that the number of claims is now levelling off, and that the majority so far have been made by customers in the east and south of the country.

"While it is still too soon to present an exact tally of both the final claim count and the gross cost from this storm, our reinsurance programme provides good cover in extreme events such as this," the insurer noted.

"As a result, the overall net cost (after reinstatement premia) to the income statement is expected to be in the range of €6m-€8m."

FBD CEO Fiona Muldoon said that, so far, Storm Emma has resulted in a smaller number of higher value claims than typical windstorms. "That said, I am pleased that our Catastrophe Property Reinsurance programme is working well to protect FBD and that the net cost of this storm will be contained at €6m-€8m," she said.

Following Storm Ophelia FBD received gross claims of between €10m and €11m. But its reinsurance programme meant the net cost to FBD was €5.4m.

Indo Business

Business Newsletter

Read the leading stories from the world of Business.

Also in Business