ACE Takes $480M 3Q Cat Hit

By Steve Tuckey

NU Online News Service, Oct. 13, 2:28 p.m.EDT?Bermuda-based ACE Ltd. said it expects total netcatastrophe-related charges for the third quarter to approximate$480 million on a pre-tax basis.[@@]

The charge includes the previously announced $100 millionestimate from Hurricane Charley. The company also now expects thecombined ratio to rise five points from between 88 percent and 90percent to between 93 percent and 94 percent.

Another Bermuda company, Aspen Insurance Holdings Ltd., said thefour hurricanes will have a negative impact on third-quarterearnings of about $135 million, net of reinsurance taxes. Theestimates are based on the company's view of total industryexposures and an extensive review of client exposures.

Seattle-based Safeco announced Tuesday it expects to take a $127million third-quarter hit to earnings stemming from the four namedhurricanes to strike Florida this year.

The company estimates that of its expected $195 millionestimated pre-tax catastrophe loss, $183 million will stem fromhurricanes.

Safeco's previous estimate of $73 million from the first twostorms, Charley and Frances, has now been raised $117 million dueto larger and more severe losses.

Last week company president Mike LaRocco said the company willwaive multiple deductibles for homeowners hit by more than onestorm. But he also noted that rates will have to go up in the stateto maintain a viable market.

Peoria-based RLI-Corp. said it expects to report $12.4 millioncumulative from the four hurricanes.