OdysseyRe Updates Katrina Estimates, Other Q3 Events

September 9, 2005

Odyssey Re Holdings Corp., the reinsurance arm of Canada’s Fairfax, has issued a bulletin from its Stamford, Conn. headquarters indicating that its net pre-tax losses from Hurricane Katrina are expected to be $80 to $100 million, which represents an after-tax net loss of $52 to $65 million.

The bulletin said the “estimate is based upon an aggregate industry loss of approximately $30 billion. Due to the extraordinary nature of this event, there is substantial uncertainty regarding the assumptions underlying these estimates at this time.”

OdysseyRe also gave estimates of additional aggregate net pre-tax losses of between $30 to $35 million for the third quarter. These included Hurricanes Dennis and Emily, and the floods in India and Europe. On an after-tax basis OdysseyRe said the losses would be between $20 and $23 million.

The reinsurer cautioned, however, that “all of these estimates are based on currently available information, and actual losses may vary from estimated losses as additional information becomes available.”

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