U.S. Tornadoes, Hail Cost Insurers $1 Billion in June, Aon Says

Jul 03, 2014 2:50 pm ET

July 3 (Bloomberg) -- Tornadoes, hail and windstorms that pounded the U.S. from the Rocky Mountains to the Tennessee Valley last month will probably cost insurers more than $1 billion, Aon Plc said in a report.

Hailstorms and winds greater than 90 miles an hour (145 kilometers) in June caused billions of dollars of economic losses, led by a full week of storms early in the month, the London-based insurance broker said today.

More than 300 tornadoes hit the U.S. last month, compared with 125 a year earlier and 111 in June 2012, according to preliminary data from the National Weather Service’s Storm Prediction Center. May, June and July tend to be the worst months for twisters, it said.

Severe weather from June 3 to June 9 this year killed three people and led to more than 100,000 claims, Aon said. Later in the month, “hail and winds gusting to hurricane strength tracked eastward,” the broker said in its report. The storm “shattered windows, punctured roofs and downed trees onto homes, structures and vehicles.”

State Farm Mutual Automobile Insurance Co. is the largest U.S. home insurer, followed by Allstate Corp., according to data compiled by Bloomberg. Both are based in the Midwestern state of Illinois, with State Farm in Bloomington and Allstate in Northbrook.

Severe thunderstorms across Western and Central Europe were the costliest catastrophes last month, with more than 2 billion euros ($2.7 billion) of estimated economic losses, according to the report. Insured losses could reach 900 million euros in France, where vineyards around Bordeaux, Cognac and Languedoc were destroyed by wind and hail.