Advertise
Resources
Member, Beacon International Group, Ltd.
HAMILTON, Bermuda—Everest Re Group Ltd. says it expects to incur net catastrophe losses of approximately $245 million, after reinstatement premiums and taxes, for the fourth quarter of 2011.
The estimate includes flooding in Thailand, with those losses now expected to be $145 million after reinstatement premiums and taxes, the Hamilton, Bermuda-based company said Tuesday.
Its estimate also includes provisions for reported upward movements greater losses on other catastrophes that occurred last year, including the earthquakes in Japan and New Zealand.
“Due to the significant number of complex events this year and the impact this had on the estimation process, the quarter’s loss estimate also includes an additional $50 million—$32.5 million aftertax—of catastrophe reserves, above the current point estimates, for all 2011 events,” Everest said
“2011 catastrophe losses have generated meaningful market price corrections, which continued through January renewals,” Joseph V. Taranto, Everest Re’s chairman and CEO, said in a statement. “In order to fully realize these benefits in 2012, we have taken a cautious approach to reserving for these events as we close the year.”
Despite that, “our surplus is expected to remain relatively unchanged for the quarter, which positions us well for 2012. We are extremely pleased with our current portfolio and anticipate strong earnings in 2012,” Mr. Taranto said.
In July, Everest Re estimated it had lost $184.6 million during the first six months of last year.