Catastrophe modeling firm Risk Management Solutions (RMS) has estimated insured losses from Hurricane Charley at $6bn to $8bn based on a detailed reconstruction of the storm's windfield and damage pattern.
The preliminary loss estimates of individual insurers and reinsurers are listed below:
Alea Group Holdings: Losses from Hurricane Charley are unlikely to exceed net $10m. This is within annual loss expectations for the group's limited property catastrophe portfolio.
Ace Limited: Preliminary estimates indicate that total net losses for the entire Ace Group from Hurricane Charley will be approximately $100m pre-tax, which is in line with previously stated guidance for annual catastrophe-related losses.
HCC Insurance Holdings: Net loss after reinsurance is not expected to exceed more than $10m, or approximately $0.10 per share after tax in the third quarter of 2004. Most of the company's exposure is likely to come from damage to small, privately owned aircraft written by its Avemco subsidiary.
XL Capital: Based on initial loss reports and preliminary estimates, net claims of approximately $125m are expected, the majority of which to come from its Bermuda-based reinsurance unit. The financial impact of the hurricane related claims will adversely affect XL's 3rd quarter results but will not materially affect the Company's overall financial condition.
Hiscox: On the basis of information available to date, losses are expected to be within budgeted loss ratios.
Fitch Ratings: Hurricane Charley will represent a material loss to the insurance industry. Fitch said it believes that the relatively wide range ($5bn-$10bn) of insurance loss estimates could be revised significantly once actual storm parameters are available.
AM Best: virtually all companies will be able to meet their commitments despite the projected magnitude of the potential losses.
