Massachusetts-based Allmerica Financial Corp., whose name and NYSE ticker symbol will change to “The Hanover Insurance Group Inc.” and “THG,” respectively, effective Dec. 1, 2005, announced estimated gross pre-tax catastrophe losses of approximately $5 million related to Hurricane Wilma.
The company expects to cede all Hurricane Wilma losses to reinsurers, subject to a 10 percent co-participation, since year-to-date catastrophe losses eligible for reinsurance have exceeded the retention limit in the company’s property catastrophe aggregate reinsurance treaty. This reduces the company’s pre-tax estimated loss impact from Hurricane Wilma to approximately $0.5 million, net of reinsurance.
The company’s property catastrophe aggregate reinsurance treaty protects against multiple catastrophes within the 2005 calendar year. The treaty provides $50 million of reinsurance coverage in excess of cumulative losses in the year of approximately $80 million. For purposes of determining the $80 million retention, individual events are capped at $30 million. The company retains 10% of the risk on the $50 million coverage.
Topics Catastrophe Profit Loss Reinsurance
Was this article valuable?
Here are more articles you may enjoy.
Three Top P/C Insurers Account for Most of Insurance AI Patents 
Court Ruling Could Help Shed Light on Owners of Litigation Funders, Medical Clinics 
Aon Adds to List of Brokers Suing Howden US for Alleged Poaching, Theft 
‘Door Knocker’ Roofers Were Everywhere. NC Farm Bureau Saw an Opportunity 
