Posted on 28 Nov 2012 by Neilson
Claims related to Hurricane Sandy look set to be split almost 50:50 between primary insurers and reinsurers, JPMorgan (JPM) says. This follows Swiss Re's announcement that it expects a $900 million bill from Sandy.
While JPM analyst Michael Huttner estimates Sandy will cost the industry up to $25 billion, insurer dividends look safe due to low costs for natural disasters in the first nine months, so annual disaster costs of $45 billion year-to-date are well within the five- year average, he says. Notes impact on pricing of contracts up for renewal will likely be limited.