Bermuda’s XL Capital Ltd. announced that, based on initial loss reports and preliminary estimates, it expects to receive net claims arising from Hurricanes Frances and Ivan of approximately $70 million and $150 million, respectively, making a combined loss of $220 million.
XL said “the majority of claims relating to Hurricane Frances are anticipated to be attributable to the Company’s reinsurance segment, while claims relating to Hurricane Ivan are expected to be split, approximately equally, between its reinsurance and insurance segments.
“Approximately 30 percent of the claims from both Frances and Ivan stem from the Company’s small and middle-market commercial catastrophe insurance business line. Further, the Company estimates that approximately 25 percent of the Hurricane Ivan claims relate to its marine insurance and reinsurance exposure as a result of Ivan’s path through the Gulf of Mexico.”
XL indicated that the financial impact of Hurricanes Frances and Ivan, along with the previously announced financial impact of Hurricane Charley, will probably “adversely affect its third quarter and full year results but will not materially affect its overall financial condition.”
XL has not yet compiled claims estimates from Hurricane Jeanne. It also indicated that it does not expect that net claims arising from recent storms in the Pacific will be significant.
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