The U.K.’s Kiln plc, a leading Lloyd’s insurer, has issued a preliminary estimate of the possible impact on the company from losses related to Hurricane Katrina. “The loss falls principally on Kiln’s property catastrophe reinsurance, property and marine portfolios of business,” said the announcement. “The 100 percent net loss for Kiln’s business is expected to be in the region of 80 million to 100 million pounds [$147 to $184 million], if taken in isolation.”
The company indicated, however, that the equivalent loss to Kiln plc shareholders would be considerably less – between 30 and 35 million pounds ($55 and $64 million).
“The loss is a complex one,” said the announcement, “and it will be a substantial length of time before precise forecasts of the ultimate loss can be made. Complications include the necessary length of time it will take to assess losses, coverage issues and the potential for litigation. This estimate is therefore based on an insured market loss of US$40 billion, split US$35 billion for on-shore losses and US$5 billion for off-shore losses.”
Kiln said it would give further details when it publishes its interim results on Tuesday, Sept. 13.
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