Imagine Group Holdings Limited announced from its Bermuda headquarters that it anticipates losses, net of reinstatement premiums and retrocessional recoveries, from Hurricane Katrina to be approximately $17 million.
The bulletin added that “before considering anticipated earnings for 2005, this loss represents only 3 percent of Imagine’s shareholder’s equity.”
Imagine said it had based its loss estimates on total industry insured loss estimates of $50 billion. This figure is at the high end of current estimates, which basically range from $35 billion to as high as $60 billion.
In addition, the company’ said its estimate “is preliminary and is based on internal and external portfolio modeling, a review of individual contracts, and a limited number of preliminary advices received to date. The estimate includes business written by Danish Re, which was acquired by Imagine at the end of 2004.”
Bob Forness, Imagine’s co-CEO and Chief Underwriting Officer, commented: “Property catastrophe reinsurance represents a small amount of Imagine’s overall underwriting activity. Our loss is entirely consistent with our position in the market. The impact on the overall industry, and the resultant increase in prices, will certainly generate opportunities for Imagine.”
“We at Imagine extend our deepest sympathies to those who have been impacted by Hurricane Katrina. Like many of our peers, it is our hope that any questions of coverage are addressed as quickly as possible so that valid claims can be paid and so that reinsurance is able to respond, he added”.
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