Bermuda-based XL Capital Ltd announced that, based on revised loss reports and estimates, it expects net claims arising from storm activity during the third quarter, 2004 of approximately $450 million.
This amount includes revised estimates for expected net claims related to Hurricanes Charley, Frances and Ivan of approximately $120 million, $80 million and $160 million, respectively and includes estimated net claims of approximately $90 million related to Hurricane Jeanne. Net claims related to recent storms in the Pacific were not significant.
Of the $450 million in total expected net claims, approximately $260 million is expected to be attributable to the company’s reinsurance segment with the balance of approximately $190 million attributable to the Company’s insurance segment.
As a result of these estimated claims, the company expects to record a charge of approximately $420 million after tax, which will adversely affect its third quarter and full year results but will not materially affect its overall financial condition.