Zurich-based reinsurer Converium has issued a statement indicating that increased industry loss estimates from Katrina have resulted in a new estimate of its potential exposure to between $20 and $40 million. It had previously announced preliminary estimates of between $10 and $20 million (See IJ Web site Sept. 2).
Converium said that it was now basing its estimates on an industry wide figure of $50 billion, instead of the $25 billion figure in its first estimates.
“The revised loss amount represents about 1 – 2 percent of Converium’s shareholders’ funds as of June 30, 2005 and is reflective of the Company’s reduced exposure in North America as a result of having placed Converium Reinsurance (North America) Inc. into run-off as well as the decision to write North American business from Zurich on a selective basis only,” the bulletin noted.
“Given the structure of Converium’s exposure any ultimate industry loss in excess of US$ 50 billion would have a disproportionately low impact on the Company’s loss estimate,” it added.
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
Death of Teenager on Carnival Cruise Ship Ruled a Homicide 
Barge Looted in the Bahamas Returns to Florida but Insurance Claims Mounting 
Best Quarter in a Quarter Century, Says S&P Q3 Analysis of US P/C 
Taiping Insurance Shares Hit by Over $200 Million Exposure to Hong Kong Fire 
