Everest Re Estimates Hurricane Wilma Losses at $230 Million

The Bermuda-based Everest Re Group, Ltd. announced that it estimates losses arising from Hurricane Wilma at $230 million on an after-tax basis.

“This event, which impacted the Yucatan peninsula of Mexico and South Florida, created widespread destruction, the magnitude of which was unclear in the immediate aftermath,” the bulletin continued. “On a pre-tax basis, the estimate includes $140 million relating to losses from Mexican exposures with the remaining $160 million relating to Florida exposures. This loss estimate is based on currently available information derived from the Company’s quantitative and qualitative exposure analyses as well as reports from ceding companies. Due to the inherent uncertainties in estimating a loss of this type, actual losses may vary, perhaps materially.”

As a result of these losses Everest joined the increasing group of companies who now anticipate reporting a net loss for the full year. The bulletin described the forecast as “a modest after-tax operating loss.”

On a more positive note, Everest indicated that “despite this, the Company expects year over year growth in its shareholders equity from $3.7 billion at December 31, 2004 to over $4.0 billion at December 31, 2005.”