XL’s Preliminary Thai Flood Loss Estimates: $135 to $185 Million

The XL Group gave preliminary net loss estimates related to the widespread floods in Thailand that reached their highest point during the quarter ended December 31, 2011, as ranging from approximately $135 million to $185 million, pretax and net of reinsurance and reinstatement premiums.

XL noted that approximately two-thirds of these losses relate to the Company’s Insurance segment. In addition, the Company announced “additional losses of approximately $35 million related to catastrophe loss events that occurred during the first three quarters of 2011.

“The developments on prior quarter catastrophe loss events relate primarily to second quarter 2011 U.S. tornado activity and third quarter 2011 U.S. windstorms and subsequent flooding.”

The Company’s estimates are “based on its review of individual treaties and policies expected to be impacted, along with available client data,” the bulletin noted. “The Company’s loss estimates involve the exercise of considerable judgment and are accordingly subject to revision as additional information becomes available. Actual losses may differ materially from these preliminary estimates.”

Source: XL Group plc

Topics Profit Loss Flood