Bermuda-based Endurance Specialty Holdings Ltd. reported that estimated aggregate potential claims from hurricanes Charley, Frances, Ivan, and Jeanne, net of reinsurance recoverables, reinstatement premiums, and taxes, is expected to be approximately $115 million.
“The $115 million reported loss amount includes Endurance’s previously reported loss estimates for hurricanes Charley and Frances and encompasses loss estimates for Endurance’s U.S. and Caribbean exposures,” said the announcement.
The company indicated that its loss estimates for hurricanes Charley and Frances remain consistent with the its previous indications. Endurance had estimated losses from Frances at around $20 million (See IJ Website Sept. 20), and losses from Charley at between $43 and $48 million (See IJ Website Aug.22).
Endurance was one of the many new companies set up in Bermuda in the wake of Sept. 11. Aon and Zurich established the company in November 2001. It launched a successful public offering, raising $202.3 million, in February 2003. The recent series of hurricanes were the first major disasters to hit the new, mostly Bermuda-based, companies.
Endurance said its “property catastrophe, property treaty, direct property, and other specialty lines segments were impacted by the hurricane losses.”
It also noted that the estimates are “based on currently available information derived from our proprietary catastrophe modeling, standard industry models and assessments of exposure and claims information obtained from our clients. Due to the unusually high frequency of hurricanes, estimation of losses remains especially uncertain. Endurance made significant adjustments to model outputs to factor the potential for additional material demand surge in claims; however such adjustments may prove to be inaccurate. Accordingly, actual losses from these events may vary materially from estimated losses.”
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