The Travelers Companies Inc. announced its preliminary estimate of net losses relating to Superstorm Sandy is approximately $650 million after tax and after estimated recoveries from reinsurance.
This $650 million estimate reflects a gross loss estimate (pre-tax and before reinsurance) of $1.135 billion.
The insurer said this preliminary estimate is based on an analysis of claims already reported and projected to be reported, estimated values of properties in the affected areas, estimates of damage resulting from wind and other perils, including flooding to the extent covered by applicable policies, and other factors requiring considerable judgment.
Travelers noted this estimate is still preliminary. The company said future estimates of losses and the actual ultimate amount of losses may be materially different from this current figure because of the nature of this event — including the scope of the storm, the number of insureds impacted, the complexity of factors contributing to the losses and the preliminary nature of the information available to prepare these estimates.
The company also said it intends to resume repurchases of its common shares, consistent with its long-standing capital management strategy of returning to shareholders capital not needed to support business operations. Travelers had temporarily suspended its common share repurchase activity following Storm Sandy as it assessed its exposure.
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