David Flandro, Senior Vice President
This week, three additional groups have increased their loss estimates for Hurricanes Ike and Gustav: Allied World Assurance Holdings Ltd, Brit Insurance Holdings plc, and Catlin Group Ltd.
AWAC revised its estimate for the two storms from USD71.6 million to USD113.3 million, a change of 58.2 percent. Hurricane Ike exposure grew by USD37.3 million, from USD62 million to USD99.3 million (up 60.2 percent).
Brit increased its total claims from Hurricanes Ike and Gustav from an initial estimate of USD98 million to USD112 million (14.2 percent), net of reinsurance recoveries and reinstatement premium.
Catlin increased its net loss from Hurricanes Ike and Gustav from USD200 million to USD250 million (25 percent). Its Hurricane Ike estimate is now based on an estimated total market loss from Hurricane Ike of USD20 billion or more, while before it was based on a total market loss of USD15 billion. While Catlin has increased the original estimate of its loss from Hurricane Ike by approximately 25 percent, the total market loss estimate has increased by at least 33 percent. Most of the deterioration is related to offshore energy losses; the vast majority of any further deterioration in this book of business is said to be covered by reinsurance.
- Marie-Emilie Teissier, Global Business Intelligence