The Navigators Group Inc. announced on Dec. 21 that its preliminary estimate of losses relating to Superstorm Sandy ranges between $18 million and $25 million, net of reinsurance and the effects of reinstatement premiums.The Rye Brook, N.Y.-based Navigators Group’s preliminary estimate includes the following items: the sum of estimates of claims and claim expenses incurred, reinsurance recoveries and reinsurance reinstatement premiums.
The company’s estimates are based on claims information reported to date, a review of its potential exposures, preliminary discussions with certain insureds, and catastrophe modeling techniques.
But the Navigators Group said its estimate is subject to change based on new or revised data being received from the company’s insureds as well as other factors. The company listed the following factors that can influence loss estimates:
• The magnitude and recent occurrence of Superstorm Sandy
• Relatively limited claims data received to date
• The contingent nature of business interruption and other exposures
• The unusual complexity of the coverage and legal issues relating to Superstorm Sandy
• And the other uncertainties inherent in loss estimation.
The Navigators Group is an international specialty insurance holding company with insurance company operations, underwriting management companies, and operations at Lloyd’s. Headquartered in Rye Brook, N.Y., Navigators has offices in major insurance centers in the United States, the United Kingdom and Continental Europe.