Everest Re Estimates Around $190 Million Exposure to Hurricane, Typhoon Losses

Barbados-based Everest Re Group, Ltd. announced that, based on its initial assessment of potential exposures, it expects aggregate losses from Hurricanes Charley, Frances, Ivan and Jeanne, and the quarter’s Pacific typhoons, to be approximately $190 million, net of tax.

“This includes, with respect to the hurricanes, the Company’s U.S. and Caribbean exposures,” said the bulletin. It also indicated that the estimates were “subject to variability reflecting the unusual pattern of multiple storms and the resulting impacts on claims adjusting by, and communications from, ceding companies.”

Everest Re noted that the losses it has incurred, and more broadly the industry losses from this unfortunate series of catastrophe events, “serve to underscore the vital role the global insurance and reinsurance industries serve in protecting the economic interests of their customers, as well as the importance to the companies within these industries of underwriting discipline, including the prudent management of catastrophe accumulations.”

It also indicated that the losses would have no adverse effect on its overall financial strength.