Amlin, a leading Lloyd’s insurer, has released its estimates for losses relating to Hurricanes Charley, Frances, Ivan and Jeanne, together with Typhoon Songda, indicating that gross claims are around $263 million which is reduced to $133 million net after reinsurance.
Amlin’s announcement noted that, “2004 has been an exceptional year for Hurricanes and anticipated losses are higher than our business plan assumptions for such activity. Evaluation of the loss events is at a preliminary stage.” The estimated amounts are “approximately £30 million [$54 million] above our business plan assumptions included in our 2004 pre-tax profit projection, after taking into account a normal level of future catastrophe activity in the remainder of 2004,” said the announcement.
The company explained that it writes “a diverse portfolio of insurance business and this continues to perform very well, with little additional major loss activity. This should counterbalance much of the impact of these windstorm losses. Amlin will issue an update in November with its normal quarterly trading statement.”
It also indicated that “losses of this scale will have an impact on the behaviour of insurance and reinsurance companies during the remainder of 2004 and 2005. Amlin expects that these losses will reduce pressure for rate reductions, and generate rate rises in some areas, particularly for US catastrophe treaty business.”
Was this article valuable?
Here are more articles you may enjoy.