Alabama-based Vesta Insurance Group Inc. reported that its preliminary gross loss estimate from Hurricane Rita for its subsidiary, Texas Select Lloyds Insurance Company, is expected to fall below Vesta’s $20.0 million deductible for its excess of loss catastrophe reinsurance program.
Vesta’s net loss is expected to be in the range of $6.0 to $8.0 million, after recovery from its 50 percent quota share reinsurance agreement. The preliminary loss estimate is based on catastrophe models and initial reports from policyholders.
In addition, Vesta has updated its loss estimates for damages caused by Hurricane Katrina in South Florida in late August. Vesta currently estimates that its net losses are expected to be less than $1.0 million.
As announced previously, the company does not write any business in Louisiana or Mississippi and expects an immaterial amount of loss from Katrina’s second landfall.
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