Norway's Norsk Hydro cyber attack losses estimated at $40m; AIG named as lead insurer

Norwegian aluminium and renewable energy company Norsk Hydro, which suffered a severe ransomware attack last week, has estimated that total losses from the incident have already reached 300-350 Norwegian crowns (nearly $40 million).

The attack is said to have affected operations across majority of its manufacturing plants.

In an update issued on Tuesday (March 26) the company said that the majority of those costs stem from lost margins and volumes in the Extruded Solutions business area.

The firm also stated that it has a "solid cyber risk insurance policy with recognised insurers" and cited global insurer AIG as the lead.

Hydro has reported the "sophisticated cyber attack" to Norway’s National Investigation Service (Kripos) and is cooperating with relevant authorities, including the Norwegian National Security Authority (NSM).

The company has confirmed that most operations are now running at normal capacity.

"In the most affected business area, Extruded Solutions, production is now at 70-80%, except for the Building Systems business unit, where operations remain almost at a standstill," Hydro said in a statement.

"Hydro’s global IT organization is working continuously to resolve the situation together with external expertise. The company has now entered the recovery phase following the attack, gradually restoring IT systems in a safe and secure manner to ensure progress toward normal business while limiting the impact for people, operations, customers, suppliers and other partners."

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