Bermuda Re/Insurers Announce Q3 Cat Loss Estimates

October 17, 2011

A number of Bermuda-based re/insurers have announced their respective loss estimates for the third quarter of 2011. The figures given include loss adjustment expenses, and are net of any applicable reinsurance recoveries, reinstatement premiums and taxes.

Aspen Insurance Holdings Limited said its initial loss estimate included “$10 million for Hurricane Irene and $14 million for other natural catastrophe events,” from the U.S., Scandinavia and Asia weather-related events.

Aspen also said there was “an increase in the second quarter 2011 US severe weather-related losses of $17 million, from $65 million at June 30, 2011 to $82 million; this increase is consistent with the increase in estimated market losses from these events to $20 billion from $15 billion. Aspen’s aggregate estimated losses from other 2011 catastrophe events (Australia floods, New Zealand earthquakes, and Japan earthquake and tsunami) are unchanged.”

Montpelier Re Holdings estimated a $30 million loss “from US events including Hurricane Irene and the Texas wildfires, $20 million from US regional aggregate covers and $10 million from the July Danish floods.” It also said that it now “estimates it will incur $10 million of net losses from the June 2011 New Zealand earthquake.”

Platinum Underwriters Holding announced expected losses from “major catastrophes in the third quarter of 2011 and increases to its loss estimates for major catastrophes in the first and second quarters of 2011 will have a net negative impact of approximately $112.4 million on the Company’s third quarter 2011 results.”

In more specific terms Platinum said that “approximately $14.1 million of the estimated net negative impact relates to Hurricane Irene, which caused extensive flooding and wind damage in the Caribbean and along the East Coast of the United States in late August of 2011. This estimate is based on claims information from brokers and clients, a review of the Company’s in-force contracts, portfolio modeling and market share analysis.”

Alterra Capital Holdings Limited said its “initial loss estimate from Hurricane Irene and other catastrophe events that occurred during the third quarter of 2011 is in the range of $20 million to $30 million.” It also indicated that it “believes that its estimated losses from first half 2011 global catastrophe events continue to be within previously announced ranges.”

Endurance Specialty Holdings Ltd. announced that its initial estimates of Q3 cat losses are “$26 million, related to the July Danish flood, $21 million related to Hurricane Irene and $11 million related to the September Texas brushfires.”

Endurance also said it “incurred $41 million of estimated losses related to aggregate catastrophe reinsurances of regional insurance companies in the Midwest. Endurance incurred these third quarter losses predominantly in its catastrophe reinsurance line of business. Endurance’s aggregate estimated losses from prior 2010 and 2011 catastrophe events were unchanged for the third quarter.”

CEO David Cash noted that the “losses experienced by Endurance in the third quarter were expected given the $2 billion of third quarter industry losses in the Midwest that came on the heels of earlier tornadoes and floods in the same region, the $1 billion of industry losses from Danish floods and the $5 billion industry losses from Hurricane Irene.”

Sources: Aspen, Alterra, Endurance, Montpelier, Platinum

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