Beazley, Catlin, Axis Capital Expect Millions in Sandy Losses

Sandy losses

Source: Source: A.M. Best | Published on December 21, 2012

Superstorm Sandy

Beazley plc, Axis Capital Holdings Ltd., and Catlin Group Ltd. have released loss estimates from Hurricane Sandy that range from $90 million to $300 million, according to written statements.

Catlin, a Bermuda-based specialty property/casualty insurer and reinsurer, estimates losses of $200 million, which is net of reinsurance and reinstatements. The company noted several factors, like Sandy's sheer size, are causing uncertainties in determining a loss estimate and it will have a better figure when it reports full-year earnings.

Axis Capital, a Bermuda-based specialty insurer and treaty reinsurer, expects losses of about $300 million, which is net of tax, reinsurance recoveries and reinstatement premiums. The company expects that figure to be evenly split between the company's insurance and reinsurance segments. Reinsurance losses stem primarily from property catastrophe and property per risk treaty with commercial property exposure. The insurance segment losses are from commercial property and marine lines.

Beazley, a Dublin, Ireland-based specialty insurer, estimates net losses from the storm of about $90 million. The company said the majority of claims will be covered by catastrophe margins. When factoring in the losses, the company expects to report a 2012 combined ratio in the low 90s.

Beazley companies, Axis Capital companies and Catlin companies currently have a Best's Financial Strength Ratings of A (Excellent).

Sandy struck on the evening of Oct. 29 just southwest of Atlantic City, N.J., as a post-tropical cyclone. Insured losses could reach up to $25 billion, according to RMS. Companies have been working to survey damage and quantify losses, which have been coming out recently.