Bermuda-based Allied World Assurance Holdings, Ltd. said it expects net losses arising from Hurricane Katrina to be in the $200 to $250 million range.
“Our preliminary estimate is based on a combination of factors, including an extensive review of our ground-up account loss evaluations for our direct insurance portfolio, our modeled results, preliminary information received from clients and brokers, and industry loss estimates,” said the announcement. “This range also includes expected losses from our reinsurance portfolio of both general property and property catastrophe business.”
AWAC also noted: “Due to the nature and size of this unprecedented event, the modeled numbers and industry loss estimates vary widely, and the issues are complex. Certainty as to the magnitude of the loss and the impact on our expected results will take additional time to develop, and we can give no assurance that the ultimate cost of this event will not exceed our preliminary estimate. We are working diligently to ensure that our customers and policyholders are given the utmost attention and service during this very difficult time.”
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