The Erie Insurance Group announced that it has received loss notifications from more than 17,000 policyholders as a result of Hurricane Isabel and subsequent severe wind and rainstorms that struck North Carolina, Virginia, Maryland and Pennsylvania.
The group estimated that its total losses from the storm would be approximately $74 million. It also noted that “catastrophic wind and hailstorms that struck western Pennsylvania in July resulted in nearly 1,700 claims and incurred losses of approximately $20 million.”
The announcement mainly concerned Erie Indemnity Company, which is publicly traded on the NASDAQ exchange, as it shares in the underwriting result of the combined P/C Group through a 5.5 percent participation in an intercompany reinsurance arrangement.
The announcement indicated that “These catastrophe losses, coupled with other underwriting losses, will trigger recoveries under an aggregate excess- of-loss reinsurance agreement the Company has in effect with Erie Insurance Exchange. Because of these recoveries, there will be no material effect from these catastrophe losses on the third quarter 2003 financial results of the Erie Indemnity Company.”
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