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Platinum Underwriters, XL Group Release Sandy-Related Loss Estimates

Posted on 13 Dec 2012 by Neilson

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Sandy insured lossesPlatinum Underwriters Holdings Ltd. and XL Group PLC released their estimated catastrophe losses related to superstorm Sandy, becoming the latest firms to estimate the impact of the storm that hammered the U.S. Northeast in late October.

Predictions of the insurance industry's losses suggest that the final industrywide tally from the massive storm could exceed $20 billion, but most major insurers are expected to pull through without absorbing permanent damage.

Reinsurer Platinum Underwriters expects fourth-quarter results to be hurt by about $30 million because of Sandy. That projection includes a preliminary estimate of losses, loss-adjustment expenses and other items. Platinum Underwriters said its assessment is continuing.

XL Group expects losses related to Sandy of $350 million, net of reinsurance and reinstatement premiums, with about 60% of the estimated loss related to its reinsurance unit. Within the reinsurance business, XL Group said about 20% of the estimated losses are at its marine segment, with the remainder related to property reinsurance.

Platinum Underwriters shares closed Wednesday at $44.58 and were inactive in after-hours trading. The stock is down 4.9% from its all-time high of $46.87 set in late October.