Ace, Montpelier Re estimate damages from Superstorm Sandy
Posted On: Dec. 10, 2012 12:00 AM CST
Ace Ltd. and Montpelier Re Holdings Ltd. have announced preliminary loss estimates related to Superstorm Sandy.
Ace sustained preliminary losses attributable to Sandy in the Northeastern United States estimated to be $380 million after tax, net of reinsurance and including reinstatement premiums, the Zurich-based insurer said Monday.
The company said the estimate included losses generated from the company's commercial and personal property/casualty insurance businesses as well as its reinsurance operations.
“Due to the size and complexity of the storm and related losses, the estimate is subject to change,” said Ace in a statement.
In addition, Montpelier Re Holdings Ltd. said Monday that it estimates its pretax net loss incurred from Superstorm Sandy in the fourth quarter will be approximately $95 million, net of reinsurance recoveries and reinstatement premiums.
Hamilton, Bermuda-based Montpelier said its initial loss estimate was based on a combination of Montpelier's proprietary CATM modeling analysis, an underwriting assessment of in-force contracts and a limited number of loss advices received from clients.
Like Ace, Montpelier cautioned that “because of the uncertainties associated with the various inputs to the estimate, Montpelier's actual losses may differ significantly from the estimate.”