St. Paul Travelers: Initial Wilma Losses About $220M After Tax

The St. Paul Travelers Companies Inc. announced that its preliminary estimate for catastrophe losses relating to Hurricane Wilma is approximately $220 million, after tax, net of reinsurance. This amount is based upon an estimated gross catastrophe loss of $410 million.

For the third quarter of 2005, St. Paul Travelers reported catastrophe losses of $1.009 billion, after tax, net of reinsurance and including the cost of reinstatement premiums, relating to Hurricanes Katrina and Rita. At this time, these estimates remain unchanged.

The estimates for Hurricanes Katrina, Rita and Wilma were developed through analyses of claims reported and anticipated to be reported, the values of properties in the affected areas, damage projections estimated by wind force and the presence of other perils, anticipated costs for demand surge and other factors requiring considerable judgment.

Due to the complexity of factors contributing to these losses, there can be no assurance that St. Paul Travelers’ total costs for these hurricanes will not differ materially from its current estimates.