Alleghany Expects $288M Sandy Loss; Assurant Estimates $200M Loss
Alleghany Corporation said this week its preliminary estimate of after-tax loss related to Sandy — net of reinsurance and reinstatement premiums — would be approximately $288 million.
Alleghany said this estimate reflects a consolidated pre-tax loss estimate, net of reinsurance and reinstatement premiums, of approximately $443 million, comprising $265 million from Transatlantic Holdings Inc., $165 million from RSUI Group Inc., and $13 million from Alleghany’s Homesite Group Incorporated investment.
Alleghany’s preliminary loss estimate is based upon an analysis of reported claims, an underwriting review of in-force contracts, estimates of losses resulting from wind and other perils, including storm surge and flooding to the extent covered by applicable policies, and other factors requiring considerable judgment.
The company said the ultimate amount of actual losses may be materially different from this preliminary estimate due to the size and complexity of the event and the preliminary nature of the information available to prepare the estimate. These Sandy-related losses will be reflected in Alleghany’s fourth quarter 2012 results, and any subsequent changes will be recorded in the period in which they occur.
Meanwhile, Assurant Specialty Property said it expects losses from Superstorm Sandy to be in the range of $200 million and $220 million on a pre-tax basis and net of reinsurance. Based on this estimate, the company said it does not expect to exceed the retention limit of its 2012 property catastrophe reinsurance program.
Assurant Specialty Property, part of Assurant, is a leading provider of renters and lender-placed homeowners insurance and the sixth-largest administrator of the National Flood Insurance Program (NFIP). In addition to paying the majority of more than 13,000 Sandy-related claims on its own policies, the company has processed nearly 9,300 claims for the NFIP.
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