Insurers exposed to minimum $5bn loss as Thailand suffers continued record flooding, according to Aon Benfield October catastrophe study

CHICAGO, Nov. 3, 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 October.

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Published by Impact Forecasting, the firm's catastrophe model development center of excellence, the report reveals that flooding continued to inundate much of Thailand for a third full month, as record levels of floodwater entered sections of the capital, Bangkok.

The flooding has impacted 64 of Thailand's 77 provinces, affecting more than 9.9 million people with at least 427 reported dead. Preliminary economic losses have been listed at THB300 billion (USD9.8 billion), with insured losses already estimated at more than THB140 billion (USD4.6 billion). Assessments remain ongoing as approximately 3.3 million homes and nearly 15,000 manufacturing and industrial plants have sustained various levels of inundation.

Elsewhere in Southeast Asia, flooding persisted in parts of Laos, Cambodia and Vietnam, killing at least 342 people. More than 480,000 homes were destroyed or severely damaged as extensive flooding caused substantial inundation to crops. Total combined economic losses are expected to be over USD766 million.

Meanwhile, the remnants of Tropical Storm 02B brought excessive rains to Myanmar, resulting in flash flooding and overflowing rivers that killed at least 215 people.

Steve Jakubowski, President of Impact Forecasting, said: "Asia continues to suffer the consequences of extreme natural disaster events in 2011, and the recovery efforts for the ongoing flood crisis in Thailand particularly will be protracted and extensive. Until the floods fully begin to recede, there will remain some uncertainty as to the overall economic impact felt throughout the country. Regardless, early indications suggest this is a historic event in Thailand. The prolonged, extensive flooding is another natural disaster event for a country which has dealt with many over the years, particularly the 2004 tsunami."

A magnitude-7.2 earthquake struck eastern Turkey, killing at least 601 people and leaving more than 4,152 injured. Van Province suffered widespread damage, with at least 11,232 buildings listed as damaged or destroyed. Dozens of villages near the epicenter saw thousands of additional homes collapse, with a total economic loss estimated to be in the hundreds of millions of dollars (USD).

Meanwhile, a strong storm system yielded torrential rains, flooding and mudslides across Europe, killing at least nine people, including seven in Italy. Italian officials reported that the hardest-hit areas came in the regions of Tuscany and Liguria.

Weeks of heavy rains resulted in widespread flooding across southern and central sections of Nigeria, where at least 10 people died and 25,000 homes were submerged in areas around the city of Lagos and villages in Imo State.

Elsewhere, a strong, early season Nor'easter brought record snowfall and gusty winds across parts of New England and the Mid-Atlantic in the U.S., killing at least 27 people. The system caused widespread damage as the weight of the heavy, wet snow caused trees and power poles to snap. Total economic losses were preliminarily estimated by state governments in the Northeast to reach as high as USD3 billion..

To view the full October Cat Recap report, please visit the link below:

http://thoughtleadership.aonbenfield.com/ThoughtLeadership/Documents/201111_if_monthly_cat_recap_october.pdf

About Aon Benfield

Aon Benfield, a division of Aon Corporation (NYSE: AON), is the world's leading reinsurance intermediary and full-service capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world's markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals' expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit 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.

About Aon

Aon Corporation (NYSE: AON) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human resources solutions and outsourcing. Through its more than 60,000 colleagues worldwide, Aon unites to deliver distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally in over 120 countries. Named the world's best broker by Euromoney magazine's 2008, 2009 and 2010 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008 and 2009. A.M. Best deemed Aon the number one insurance broker based on revenues in 2007, 2008 and 2009, and Aon was voted best insurance intermediary 2007-2010, best reinsurance intermediary 2006-2010, best captives manager 2009-2010, and best employee benefits consulting firm 2007-2009 by the readers of Business Insurance. Visit http://www.aon.com for more information on Aon and  http://www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.

SOURCE Aon Corporation