ISO: Insurers Had $1.2 B Quarterly CAT Loss

NU Online News Service, April 28, 3:38 p.m.EDT?U.S. property-casualty insurers sustained an estimated$2.1 billion in first quarter property-loss claims from eightcatastrophes, according to preliminary estimates by Property ClaimServices.[@@]

The company, a unit of the Jersey City-based Insurance ServicesOffice, Inc. said the loss figure was the second highest since thefirst quarter of 1996, when the industry suffered losses of $2.6billion. First-quarter catastrophe losses in the first three monthsof 2004 were $1.04 billion.

PCS estimated the eight catastrophes will generate 535,000claims from policyholders in 28 states--61 percent of which arepersonal property, 14 percent commercial property, and 25 percentvehicle claims.

The quarter's costliest catastrophe loss came from thunderstormsin late March that pounded the South and the East Coast for anestimated $655 million in losses.

Texas, at $565 million, headed the list of the five mostseverely affected states, followed by California at $275 million,Georgia at $220 million, Alabama at $150 million and Pennsylvaniaat $120 million.

PCS defines a catastrophe as an event that causes $25 million ormore in insured property losses and affects a significant number ofp-c policyholders and insurers.

PCS estimates represent anticipated insured losses on anindustrywide basis arising from catastrophes, reflecting the totalinsurance payment for personal and commercial property lines ofinsurance covering fixed property, personal property, vehicles,boats, related property items, business interruption and additionalliving expenses. The estimates exclude loss adjustmentexpenses.