Typhoon Megi could cause $600m damage

Typhoon Megi, which made landfall in the Philippines on Monday as a category 5 'super-typhoon' will cause economic damage of between $300m and $600m, estimates catastrophe modelling firm Eqecat. The company did not give an estimate for insured losses.

According to Eqecat, Typhoon Megi made landfall over the Cagayan and Isabela provinces in northern Luzon Island. It weakened to a category 2 typhoon after landfall. Megio is the strongest cyclone so far in 2010, Eqecat said.

Megi is expected to re-intensify to a category 3 storm as it traverses the South China Sea before making its second landfall along the south-east China coast between Hainan Island and Hong Kong.