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RMS: Insured Losses from Tornado-Hit South Could Reach $6 Billion

Posted on 17 May 2011

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Risk Management Solutions (RMS) estimates damages from the powerful tornadoes that hit the South in late April caused insured losses of up to $6 billion, the highest figure yet to emerge from disaster-modelers.

A single tornado that struck Tuscaloosa and Birmingham in Alabama accounts for nearly 40% of the estimate said. RMS. The total insured losses from the violent weather that affected several states from April 25 to 28 will range from $3.5 billion to $6 billion.

An estimate last Monday from rival modeler AIR Worlwide put the number at $3.7 billion to $5.5 billion, but included storms from a wider range of dates—April 22 to 28.

On Thursday, Allstate Corp. warned investors it had about $1.4 billion in catastrophe losses for all of April. The second quarter, which ends June 30, is already slated to be Allstate's costliest period for disaster claims since 2008.