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Heavy June Flooding Results in $5.4bn Economic Loss for China, According to Aon Benfield Catastrophe Study

CHICAGO, July 7, 2011 /PRNewswire/ -- Aon Benfield, the global reinsurance intermediary and capital advisor of Aon Corporation (NYSE: AON), today releases the latest edition of its Monthly Cat Recap report, which reviews the natural disaster perils that occurred worldwide during June.

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Published by Impact Forecasting, the firm's catastrophe model development center of excellence, the report reveals that heavy flooding in China during the month directly impacted at least 37 million people, displacing around 1.6 million residents and submerging nearly one million hectares of farmland, according to the country's Ministry of Civil Affairs.

The deluge impacted 13 central and southern provinces including the Yangtze River Basin, killing at least 199 people with dozens more remaining missing.

More than 500,000 homes were damaged or destroyed and hundreds of roads, bridges and railways were submerged, resulting in a direct economic loss listed at CNY35 billion (USD5.41 billion).

Steve Jakubowski, President of Impact Forecasting, said: "China has once again been struck by severe weather events that have caused widespread damage and economic loss. The country has a highly complex risk landscape, and this year has suffered a series catastrophe events including droughts, severe winter weather, several earthquakes, sandstorms and flooding, which individually and in aggregate have been extremely costly from both an economic and human perspective. We will continue to employ the very latest risk science to help China understand the risks it faces."

Elsewhere in Asia, flooding in parts of India, Tajikistan, Singapore and the Philippines, caused varying amounts of damage, and a number of deaths.

In Minot, North Dakota, a record overflow from the Souris River flooded more than 4,100 homes in the city, causing at least USD200 million in damages and reconstruction costs throughout the river basin, while in Canada, dozens of homes were inundated by the floodwaters.

Meanwhile, Tropical Storm Arlene became the first Atlantic cyclone of 2011, making landfall near Cabo Rojo, Mexico and killing at least 20 people following widespread flooding and landslides in the states of Veracruz, Tamaulipas and San Luis Potosi.

On Mexico's Pacific coast, Hurricane Beatriz skirted the coastline and caused three fatalities.

In Asia, three separate tropical storms – Sarika, Haima and Meari – crossed the Western Pacific Ocean Basin and caused 67 deaths and USD342 million in damages across parts of China, the Philippines, Korea and Vietnam.

Two strong aftershocks (of magnitudes 5.2 and 6.0) struck greater Christchurch in New Zealand during the month, leaving at least one person dead and 46 more injured. Damage was reported throughout Christchurch and its eastern suburbs due to ground shaking and resultant liquefaction and rockslides.

To date, the New Zealand government has not released any official preliminary loss projections for the aftershock, but the New Zealand Earthquake Commission has received at least 22,000 insurance claims.

In the U.S., wildfires burned across parts of Arizona, New Mexico, Texas and Florida in the U.S. in June, killing two people and destroying significant amounts of timber in Texas which could cost the state USD500 million in lost productivity.

To view the full Aon Benfield June Cat Recap report, please follow the link below:

http://www.aon.com/attachments/reinsurance/201107_if_monthly_cat_recap_june.pdf

About Aon Benfield

As a recognized leader in treaty, facultative and capital markets, Aon Benfield is redefining the role of the reinsurance intermediary and capital advisor. Through our notable expertise and industry-leading proprietary tools and products, we help our clients to redefine success. Aon Benfield offers unbiased capital advice and customized access to reinsurance and capital markets. As a trusted advocate, we provide local reach to the world's markets, an investment in innovative analytics, including catastrophe management, actuarial, and rating agency advisory, and the right professionals to advise clients in making the optimal capital choice for their business. With an international network of more than 80 offices in 50 countries, our worldwide client base is able to access a broad portfolio of integrated capital solutions and services. Learn more at aonbenfield.com.

About Impact Forecasting® LLC

Impact Forecasting is a catastrophe modeling center of excellence whose seismologists, meteorologists, engineers, mathematicians, finance risk management and insurance professionals analyze the financial implications of natural and man-made catastrophes around the world.  Impact Forecasting's experts develop software tools and models that help clients understand risks from hurricanes, tornadoes, earthquakes, wildfires and terrorist attacks on property, casualty and crop insurers and reinsurers.  To find out more about Impact Forecasting® LLC, visit www.impactforecasting.com.

Media Contacts:

   
     

David Bogg

Andrew Wragg

 

Aon Benfield

Aon Benfield

 

t: +44 (0)20 7522 4016

t: +44 (0)20 7522 8183

 

e:david.bogg@aonbenfield.com

e:andrew.wragg@aonbenfield.com

 
     

Alexandra Lewis

   

Aon Benfield

   

t: +44 (0)20 7882 0541

   

e:alexandra.lewis@aonbenfield.com

   
   

 

SOURCE Aon Corporation

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