Photo: The Norwegian Natural Perils Pool.
The amount of material damage following the landslide at the factory building in Halden has previously been estimated at NOK 1.2 billion. As of November 1, the estimate has been increased to NOK 1.262 billion.
The landslide occurred in April with no injuries.
In a press release from Norske Skog, it is stated that an agreement has been concluded with the insurance company for coverage of up to NOK 2.4 billion for all damages. This amount also includes compensation for business interruptions that are not covered under the Natural Perils Insurance Act.
Updated loss reserves for the material damages covered in accordance with the Natural Perils Insurance Act are currently NOK 1,262 billion. Of this amount, a settlement of NOK 1 billion is included for the machine damage. The rest of the reserves represent repair of the building damage including the necessary securing of the mountain to carry out the repairs and costs for experts.
There is still some uncertainty related to the costs associated with securing the cutting in the mountainside and rebuilding building structures. The estimate will therefore be subject to change.