Erie Insurance Updates Losses From Catastrophes

October 8, 2003

Pennsylvania-based Erie Insurance Group announced that it has received loss notifications from more than 17,000 policyholders as a result of Hurricane Isabel and subsequent severe wind and rain storms that struck North Carolina, Virginia, Maryland and Pennsylvania.

Erie Insurance Group estimates total losses from these events to be approximately $74 million. Additionally, catastrophic wind and hailstorms that struck western Pennsylvania in July resulted in nearly 1,700 claims and incurred losses of approximately $20 million.

Erie Indemnity Company shares in the underwriting result of the combined Property & Casualty Group through its 5.5 percent participation in an intercompany reinsurance arrangement. These catastrophe losses, coupled with other underwriting losses, will trigger recoveries under an aggregate excess- of-loss reinsurance agreement the company has in effect with Erie Insurance Exchange. Because of these recoveries, there will be no material effect from these catastrophe losses on the third quarter 2003 financial results of the Erie Indemnity Company.

Erie Indemnity Company provides management services to the member companies of the Erie Insurance Group, which includes the Erie Insurance Exchange, Flagship City Insurance Company, Erie Insurance Company, Erie Insurance Property and Casualty Company, Erie Insurance Company of New York and Erie Family Life Insurance Company.

Was this article valuable?

Here are more articles you may enjoy.