Alea Group Estimates Hurricanes’ Impact at $55 Million

Alea Group Holdings, a specialty insurer and reinsurer, announced from Bermuda that the estimated impact on earnings of recent hurricane activity in the United States and the Caribbean would be approximately $55 million (£30.9 million) on a pre-tax basis.

“Hurricanes Charley, Frances, Ivan and Jeanne have resulted in one of the most active storm seasons in the region ever recorded,” said the bulletin. It added that the estimate includes the net pre-tax cost previously announced for Hurricane Charley of less than $10 million.

“The loss estimate was calculated following a thorough review of our portfolio, and discussions with clients and brokers. The impact of recent typhoons to strike the Pacific region is not expected to be significant,” the announcement continued.

Mark Ricciardelli, Group Chief Executive Officer, commented: “The 2004 hurricane season has been one of the most active on record. Hurricanes Charley, Frances, Ivan and Jeanne have cumulatively created one of the costliest seasons recorded for our industry. As a consequence, we believe these storms will have a positive impact on rates in 2005 and 2006.”