Severe storms and heavy rain have caused Slovenia's worst floods on record, also affecting the South of Austria. While economic losses are estimated at about EUR 500 million, thousand of people evacuated from their homes and at least 6 died. Local re/insurers expect significant claims expenses.

For Slovenia, this was a one to 1,000 years event, according to local sources. Slovenian Prime Minister, Robert Golob told the press: that "the damage is unimaginable, as practically two-thirds of Slovenia is affected in one way or another, and the efforts to enable normal life again will be very great." The country saw almost a month’s worth of rainfall in only 24 hours causing imense dmages to infrastructure, distroing many buildings and leaving tens of thousands of homes without electricity.

Several countries have sent teams of recuers as well as refabricated temporary bridges, machinery, helicopters etc. Slovenia has activated the EU Civil Protection Mechanism.

As the August floods add to the losses caused by severe storms,wind and hail in June and July, the largest Slovenian re/insurer, TRIGLAV, announced “this year's CAT claims of the Triglav Group will deviate significantly from their long-term average. As a result, they will have a negative impact on the achievement of the Group's planned annual result; however, the impact will be limited by the Group's adequate reinsurance protection.”

SAVA Re, the second largest Slovenian insurance group, said that based on Sava’s exposure models, which also simulate the probable claims payments, it estimates that the impact of the recent events on the operating result of the SAVA Insurance Group, taking into account the reinsurance cover in place, will be in the range of approximately EUR 20 million to EUR 25 million.

Both groups’ exposure exceeds the Slovenian borders, as they are among the main players in the entire Adriactic region. Although it is not yet possible to estimate the amount of claims, both groups expect that the largest impact will come from the insured losses in Slovenia.

Due to floods in Slovenia and its surroundings, both Zavarovalnica Triglav and the Sava Insurance Group (within which the listed reinsurance company Sava Re operates) warned that this year's mass claims will deviate significantly from the long-term average.

"This will have a negative impact on the planned annual result of the Triglav Group, which will however be limited due to adequate reinsurance protection. More detailed estimates of summer disasters will be possible after extreme weather conditions have ceased. The Triglav Group is financially stable, adequately liquid and well capitalised," Triglav said via Seoneto.

The Sava Insurance Group also emphasizes that they have sufficient liquidity and adequate reinsurance coverage for damages after natural disasters, which ensures timely payment of claims to our policyholders and preservation of a sound financial position of the Group. Final damages, of course, do not yet exist, but it is estimated that the impact on the operating result of the Sava Insurance Group, taking into account the established reinsurance covers, will range between EUR 20 and 25 million. A more comprehensive assessment of the expected overall impact on operations will be published in a semi-annual report, 25 August.