Erie Indemnity Co. announced that it expected losses from the Sept. 11 attacks to be between $5.5 and $6.7 million. The company said that reinsurance pooling with the Erie Insurance Group had reduced the impact, which would result in a 5 to 6 cents per share reduction in income for the 3rd quarter.
The impact on the entire group, however, is much larger. “The Erie Insurance Group’s primary insurance and reinsurance lines of business have incurred estimated losses of $100 to $150 million stemming from the tragic attacks of September 11th,” said the announcement.
The group’s losses came from direct business written by the Erie Insurance Exchange and its affiliated property and casualty insurance companies, and from reinsurance it assumed from unaffiliated companies.
Rated A++ (Superior) by A.M. Best, the Erie Insurance Group affirmed that the losses would have no “significant financial impact” on shareholders.