RLI Sees $3 Million in Ivan Losses

Peoria, Ill.-based surplus line insurer RLI Corp. has reported a preliminary range of after-tax losses from Hurricane Ivan of $3 million to $3.5 million. This estimate is based on actual claim activity to date and projections by the company’s catastrophe management systems.

The company also confirmed that actual losses from both Hurricane Charley and Hurricane Frances have so far conformed to earlier projections. For those two events, RLI expects losses to be between $5 million and $6.5 million after taxes. Hurricane Ivan’s expected losses for RLI should result in combined losses for all three events of between $8 million and $10 million after tax, which would affect the quarter’s earnings by between 31 cents and 38 cents per share. RLI will be releasing third quarter results on Oct. 14, 2004.