Since Superstorm Sandy slammed into the New Jersey coastline on Oct. 29, 2012, dozens of insurers and reinsurers have publicly announced their Sandy-related preliminary loss estimates.
The following are the latest company-specific estimates as of Jan. 8, 2013 (in alphabetical order). These estimates are preliminary and are subject to change based on new or revised data. Estimates may change also because of unusual complexity of the coverage and legal issues surrounding Sandy. Some companies have yet to announce monetary loss estimates.
| Company | Preliminary Sandy-Related Loss Estimates |
|---|---|
| Ace Ltd. | The company estimates $380M Sandy losses, after-tax and net of reinsurance. The figure includes losses from commercial and personal lines, as well as reinsurance operations. |
| Alleghany Corp. | The company expects Sandy losses of around $288M, after-tax, net of reinsurance and reinstatement premiums. |
| Allied World Assurance | The company expects Sandy losses of around $165M, pretax and net of reinsurance recoverables, and reinstatement premiums in 2012 Q4. |
| Allstate Corp. | The company said last November that it expects to report October disaster losses of $1.08B, mostly due to Sandy. Allstate said its gross losses were $1.28B but that it expected to recover about $200M in reinsurance. Pretax losses, net of reinsurance, include $975M for Allstate, $95M for Encompass, and $5M for Esurance. |
| Alterra Capital Holdings | The company estimates losses of between $90M and $120M, pretax and net of reinsurance and reinstatements. |
| American Financial Group | The company anticipates losses of between $25M and $35M, pretax, net of reinsurance. |
| American International Group | The company expects losses of around $1.3B, after-tax and net of reinsurance. The estimate reflects a pre-tax loss estimate, net of reinsurance, totaling some $2.0B. |
| Amlin plc | The reinsurer estimates losses of about $236M, net of reinsurance and reinstatements. |
| Arch Capital Group | The company’s loss estimate ranges between $170M and $240M, net of reinsurance and the effects of reinstatement premiums. Losses are estimated to be 40 percent from insurance operations and 60 percent from reinsurance operations. |
| Argo Group International | The company expects its 2012 Q4 results to include pretax CAT losses related to Sandy of between $45M and $55M, net of reinsurance and reinstatement premiums. |
| Aspen Insurance Holdings | The company expects 2012 Q4 income to include around $175M in Sandy-related losses, after-tax, and net of reinsurance and reinstatement premiums. |
| Assurant Specialty Property | The company estimates losses in the range of $200M and $220M, pretax, net of reinsurance. The company doesn’t expect to exceed the retention limit of its 2012 property catastrophe reinsurance program. |
| Axis Capital Holdings | The company expects losses of $300M, net of tax and estimated recoveries from reinsurance and including estimated reinstatement premiums. The loss impact is expected to be split evenly between insurance and reinsurance segments. |
| Beazley plc | The company estimates losses of around $90M. The company said the majority of claims will be covered by catastrophe margins. |
| Catlin Group | The company estimates losses of $200M, net of reinsurance and reinstatements. |
| Cincinnati Financial Corp. | The company anticipates losses of $25M to $35M, pretax, for its 2012 Q4. The company said commercial lines accounts for two-thirds of the losses. Some 60 percent of the claims came from the Cleveland area, and 20 percent from Pennsylvania. |
| Chubb Corp. | The company estimates Sandy-related losses to be around $570M after tax. The amount includes estimated losses and loss expenses net of reinsurance recoverable and also includes estimated reinsurance reinstatement premiums. |
| Endurance Specialty Holdings | The company estimates Sandy-related pretax losses at $160M. Endurance said that from the losses, $125M is related to the reinsurance segment, with the rest coming from its insurance business. |
| Everest Re Group | The company estimates Sandy losses to be about $220M, net of reinstatement premiums and taxes. The impact of this loss will largely be reflected in reinsurance segments. |
| Flagstone Reinsurance | The estimate for the net negative impact is $39.1M, net of reinstatement premiums and reinsurance, retrocessional and other recoveries. |
| The Hanover Insurance Group | The company anticipates a net after-tax earnings impact in the range of $120 to $140M. The Hanover said losses are unlikely to exceed the retention on its domestic property catastrophe reinsurance program. |
| Hartford Financial Services Group | The Hartford expects pretax losses of $370 million from Sandy. Some 60 percent of the losses were in commercial segments and 40 percent in the consumer segment. |
| HCC Insurance Holdings | The company’s preliminary estimate for 2012 Q4 CAT losses are in the range of $30M and $35M, pretax, after reinsurance and reinstatement premium. These losses are related to Sandy, and they mostly impacted the company’s property treaty, property direct and facultative, and energy lines of business in the international segment. |
| Hiscox Ltd. | The company estimates net claims at approximately $146M. |
| Kemper Corp. | The company anticipates losses of $45M in pretax losses for 2012 Q4. |
| Lancashire Holdings | The company expects the net impact to be in the range of $40M and $60M, net of reinsurance and reinstatements. The estimate doesn’t include any benefit from the $40M industry loss warranty cover, attaching at industry losses of $20B. |
| Liberty Mutual Insurance | The company has not issued loss estimates. Liberty Mutual is one of the major insurers of homeowners and commercial multi-peril risk in affected regions. |
| Lloyd’s of London | The world’s oldest insurance market anticipates claims could cost between $2B and $2.5B, pretax. Lloyd’s expects a minimal impact on its member capital. It also said the central fund won’t be affected. |
| Maiden Holdings Ltd. | The company said its loss estimate is in the range of $25M and $35M. |
| Markel Corp. | The company anticipates losses in the range of $75M and $125M, pretax and including reinstatements. |
| Meadowbrook Insurance Group | The company expects its after-tax impact of Sandy-related claims to be between $3.5M and $4.5M. |
| Mercury General Corp. | The company expects total losses to be around $30M. The after-tax effect on 2012 Q4 income is estimated to be $20M. |
| MetLife Inc. | The company expects a gross loss from Sandy of between $140M and $160M for the personal lines P/C business. After reinsurance recoverables and taxes, MetLife estimates losses of between $85M and $95M. |
| Montpelier Re Holdings | The company anticipates net losses of around $95M, pretax, net of reinsurance and reinstatements. |
| Munich Re | The reinsurer anticipates its expected claims burden from Sandy in the mid three-digit million euro range, based on a provisional estimate. |
| The Navigators Group | The company’s estimate of Sandy losses ranges between $18M and $25M, net of reinsurance and reinstatement premiums. |
| New Jersey Manufacturers Insurance Co. | The company anticipates that payouts to policyholders who have suffered covered losses could exceed $300M. |
| Novae Group plc | The company anticipates net losses in the range of $25M to $30M. |
| PartnerRe Ltd. | The company expects to post a charge of between $200M and $240M, pretax, net of retrocession and reinstatement premiums. |
| Platinum Underwriters Holdings | The company expects Sandy will have a net negative impact of $30M for 2012 Q4. The net impact includes an estimate of losses and loss adjustment expenses, net of retrocessional coverage, reinstatement premiums and income taxes. |
| Progressive Insurance Group | The company anticipates total Sandy losses could reach $90M. |
| QBE Insurance Group | The company expects losses in the range of $350M to $450M. This estimate takes into account net retentions in the U.S. P/C business, the reinsurance business and the marine and energy portfolio, all of which are protected by substantial worldwide reinsurance arrangements. |
| RenaissanceRe Holdings | The company said Sandy-related losses could cut its 2102 Q4 income by around $130M. |
| RLI Corp. | The company expects Sandy losses to be between $15M and $20M, pretax and net of reinsurance. |
| Selective Insurance Group | The company said a pretax net loss would be around $52M, including reinstatement premiums and reinsurance recoveries. Two-thirds of the claims are in personal lines. |
| State Farm | The company does not release loss estimates. But State Farm said it has so far received over 113,000 property claims (with $469,313,711 indemnity paid to date) and 18,000 auto claims (with $174,582,490 indemnity paid to date) stemming from Sandy. |
| Swiss Re | The company announced its estimates of claims are around $900M, pretax, net of retrocession. |
| Tokio Marine Group | The company announced a $258M downwards adjustment to earnings for its overseas insurance business, mainly due to Sandy. |
| Tower Group Cos. | The company estimated Sandy-related net losses at between $55M and $68M. Tower Group said industry loss warrants would pay $10M if industry losses top $10B, and another $10M if they exceed $15B. |
| The Travelers Companies Inc. | The company said its preliminary estimate of net losses is around $650M after tax and after estimated recoveries from reinsurance. This $650M estimate reflects a gross loss estimate (pretax and before reinsurance) of $1.135B. |
| United Fire Group | The company expects net losses of $13M to $19.5M. |
| USAA Group | The company has so far received some 63,000 Sandy-related claims but has not yet issued monetary loss estimates. |
| Validus Holdings Ltd. | The company’s estimate of the net negative impact is $331M, net of reinstatement premiums and reinsurance, retrocessional and other recoveries. |
| W.R. Berkley Corp. | The company expects CAT losses attributable to Sandy to be between $40M and $50M, pretax. The estimate gives consideration to all available reinsurance and is inclusive of reinstatement premiums. |
| XL Group plc | The company’s loss estimate is around $350M, pretax and net of reinsurance and reinstatement premiums. Some 60 percent of the losses come from the reinsurance segment. |
| Zurich Insurance | The company expects aggregate claims net of reinsurance of about $700M. This includes $40M related to Farmers Re in connection with the reinsurance cover provided to Farmers Exchanges. |
Topics Profit Loss Claims Reinsurance Property
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