Bermuda-based Platinum Underwriters Holdings, Ltd. announced that it expects major catastrophe losses will have a net negative impact of approximately $24.8 million on the Company’s results for the quarter ended March 31, 2012.
The company explained that the losses were related “primarily to severe weather, including tornadoes and hailstorms in Kentucky and Tennessee, referred to as Property Claims Services Catastrophes 66 and 67. The net negative impact from these events includes preliminary estimates of losses and loss adjustment expenses, reinstatement premiums and taxes.”
Platinum added that it “does not currently anticipate any material impact to its first quarter results from major catastrophe events that occurred in 2011 and prior years.”
The estimations are “generally based on the Company’s portfolio modeling, discussions with brokers and cedants, market share analysis and a review of the Company’s in-force contracts as well as claims information and analysis, if any, received from brokers and cedants,” Platinum explained.
It also cautioned that the “assessment of its exposure to these events is ongoing. The actual net negative impact of these events on the Company’s results may differ materially from the Company’s estimates due to the inherent uncertainties of making such estimates, including the preliminary nature of available information, uncertainties in loss development patterns, the use of portfolio models in the estimation process and potential inaccuracies and inadequacies in data provided by clients and brokers.
Source: Platinum Underwriters Holdings, Ltd.