Travelers Reports Isabel Losses

NU Online News Service, Oct. 6, 11:48 a.m.EDT

The Hartford, Conn.-based insurer has projected $75 million inIsabel-related catastrophe losses after reinsurance and taxes.Approximately 33,000 claims were filed as of Oct. 2.

Travelers' estimate includes net losses of approximately $50million in personal lines and $25 million in commercial lines. Thisis in addition to other catastrophe losses incurred in the thirdquarter of about $12 million after reinsurance and tax, the companynoted.

"The damage pattern of Hurricane Isabel seems to be similar tothat of 1999's Hurricane Floyd, which had a high frequency ofclaims but relatively low severity," said Douglas G. Elliot,Travelers' chief operating officer.

"In the hardest hit area, Virginia, our catastrophe responseteams, including our four mobile claim vans, have been on scenestarting on the day after the hurricane hit, and we have had morethan 400 claim specialists in the affected areas," Mr. Elliotadded.

According to a statement issued by Travelers, management'sestimate of the range of full-year net and operating income isbeing narrowed to $1.65 billion to $1.70 billion from the previousrange of $1.65 billion to $1.75 billion. This estimate is based onvarious assumptions, which include, among other things, a normallevel of catastrophe losses for the rest of the year.