Branchville, N.J.-based Selective Insurance Group today said a preliminary pre-tax gross Hurricane Sandy loss would be between $100 to $120 million and a pre-tax net loss of around $52 million, including reinstatement premiums and reinsurance recoveries.
About two-thirds of the claims are in personal lines with the remaining in commercial lines. Selective said one area of uncertainty remains business interruption claims, which are included in the estimates but are still developing as some businesses are not back to full operation.
Selective is the sixth-largest writer for the National Flood Insurance Program and expects record claim activity this quarter that will generate estimated, pre-tax, claim service revenue of $12 million, which will partially offset the $52 million loss. Together, these items will impact the fourth quarter statutory combined ratio by about 10 points, the insurer said.
‘A Significant but Manageable Event’
“Industry models have estimated Hurricane Sandy insured losses to be in a wide range of $10 to $25 billion,” said CEO Gregory Murphy. “The storm made landfall in our top market share state of New Jersey making this a significant but manageable event for Selective.
“We prepared for the storm as we always do and have had claims team members working around-the-clock since the day of the storm to assist our customers,” CEO Murphy said. “We are committed to resolving claims quickly and fairly to help our customers get their lives back in order.”