White Mountains Insurance Group, Ltd. announced from its Hamilton, Bermuda headquarters, that it estimates “total net losses resulting from the impact of hurricane Katrina on its insurance and reinsurance operations will be in a range of $150 – $300 million pretax, or $100 – $200 million after tax.”
The bulletin noted that the “estimates are based on industry losses in the range of $20 billion to $35 billion (inclusive of offshore energy losses) and are net of all reinstatement premiums. The impact on profit commissions payable to White Mountains by Olympus Re or on the value of the Company’s investment in Montpelier Re are not included in these estimates.”
CEO Ray Barrette commented: “The devastation created by hurricane Katrina is extraordinary and the financial consequences will take a long time to sort out. Our early estimates of losses are based mostly on exposure information and overall industry estimates of insured damages. Although this is a large loss for the company, we continue to have a strong balance sheet with a significant amount of undeployed capital.”
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
Shipper Escapes $41.9M Award for Man Paralyzed When Lights Fell From Pallet on Him 
AI Savings Misses ‘Should Be Making Executives Uncomfortable,’ Bain Says 
Rikers Correction Officer Lied to Obtain Workers’ Compensation Benefits 
Roof Costs Soar Even as Claims Decline: Verisk 
