Germany's Allianz AG saw its claims rising substantially in 2005 because of the unprecedented monsoon floods in India.Allianz said the floods in India, including in the metropolitan cities of Mumbai and Chennai, caused the greatest damage after hurricane Katrina in the US. The German insurance group said the amount of claims it settled because of the floods in India amounted to euro 45 million (over Rs 241 crore), whereas it was euro 67 million due to hurricane Katrina. The storm damage in northern Europe (euro 9.8 million) accounted for the third-biggest claims amount. In India, Allianz provides reinsurance services to its joint venture Bajaj Allianz General Insurance Company and also to IFFCO-Tokio General Insurance and Royal Sundaram.Allianz said, "the damage costs were significantly higher due to natural disasters and major damage. In particular, the series of disastrous hurricanes in the US, the flood disaster in India and a fire in a high-rise block in Madras caused high damage costs."Allianz suffered a euro 154 million loss arising from natural disasters, which raised the loss ratio on earned premiums for own account for property/casualty reinsurance to 62.6 per cent from 58.2 per cent in 2004.Allianz had to add euro 88.2 million to its equalisation reserve. Equalisation reserve is a long-term reserve maintained by insurance companies for to meet unforeseen cash outflows because of events such as floods, earthquakes or fires. The reserve is seen as an insurance company's "rainy day fund" compensating for unforeseen and expensive events.
