The image that went around the world: The water inflow in a gravel pit near Erftstadt-Blessem (southwest of Cologne, North Rhine-Westphalia) swallowed entire houses into a huge earth crater.



The storm hit regions in Rhineland-Palatinate and North Rhine-Westphalia, and therefore areas served by the local market leader in homeowners’ insurance, Provinzial Versicherung. 

Extreme rainfall triggered flash floods in the Ahr Valley. 189 people lost their lives. The insured loss amounted to EUR 11.1 billion. Although the affected region itself was relatively small, it was also densely populated and characterised by a high concentration of insured values. 

The reconstruction of the region required an enormous effort. The federal and state governments made a EUR 30 billion fund available.

Bernd thus became the most expensive natural catastrophe event since the North Sea Flood of 1962.  

Highest Losses in the Company’s History

For Deutsche Rück, 2021 became the year with the highest gross losses in its history. Around one third of the company’s total gross loss expenditure was attributable to the storm Bernd. Overall, gross losses rose by 83.4 percent to around EUR 930 million. Thanks to Deutsche Rück’s retrocession programme, which was specifically geared towards property insurance, the net loss retained for its own account for the full financial year amounted to EUR 437 million.  

Following Bernd, Deutsche Rück provided substantial support to the affected primary insurers. In doing so, the company also accepted a temporary reduction in its solvency ratio to below 200 percent.  

The five highest-cost natural catastrophes in Germany (insured losses in € billion);
Source: German Insurance Association (GDV) 

The five highest-cost natural catastrophes in Germany (insured losses in € billion);
Source: German Insurance Association (GDV) 

A Differentiator

Following Bernd, Deutsche Rück did not withdraw from the natural catastrophe market. It continues to provide proportional cover unchanged. The significantly increased reinsurance needs of its shareholders in the core business of homeowners’ insurance continue to be covered.  

In doing so, Deutsche Rück draws on its sophisticated modelling of natural catastrophe risks – a key differentiator in the German market. It also remains one of the few reinsurers to continue offering surplus reinsurance cover.  

Flooding also affected parts of the Ruhr region, as evidenced by this camping site in Hagen (North Rhine-Westphalia), which is close to the River Ruhr and ended up completely under water.