The London-based Catlin Group Limited, which operates in the U.K., the Lloyd’s market and as a Bermuda insurer and reinsurer, announced that it has completed its initial review of loss estimates from Hurricane Rita and has reviewed its previous loss estimates from Hurricane Katrina.
Catlin estimates that its losses from Rita will be approximately $90 million gross of reinsurance and $60 million on a net basis. As has been the case with other carriers, Catlin noted: “This estimate is subject to considerable uncertainty and could be revised as further information is received by the Group. Catlin has significant levels of reinsurance protection remaining should the Group receive additional claims arising from Hurricane Rita.”
Catlin said it is not revising its estimate that losses arising from Hurricane Katrina would be of the order of $275 million gross of reinsurance and $125 million on a net basis. “This estimate, which is still subject to significant uncertainty, is consistent with an industry-wide loss of approximately US$40 billion,” the bulletin added.
Based on these estimates, the combined losses to Catlin from Hurricanes Katrina and Rita will be of the order of $365 million gross of reinsurance and $185 million on a net basis.
Group Chief Executive Stephen Catlin commented: “Hurricane Katrina represents the largest insured loss in history, and Hurricane Rita is a major catastrophe in its own right. In the light of these losses, we are already seeing significant rate increases for numerous classes of insurance and reinsurance, particularly those affected by the hurricanes. Despite the losses from the hurricanes, Catlin is in an excellent position to take advantage of the significant underwriting opportunities that will arise over the coming months.”
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