Delayed notification of losses will push Munich Re's hurricanelosses to nearly $1.8 billion, with third-quarter North Americahurricane storm losses increasing to $600 million.

In making the announcement today, Munich said it now believesindustrywide losses for Katrina will be $45 billion, $15 billionhigher than the reinsurer's prior market estimate of $30billion.

For the company itself, the German reinsurer said the after-taximpact of Hurricanes Katrina, Rita and Wilma is now likely to be1.5 billion euros, or $1.8 billion.

Adjusting the figure to remove the impact of Wilma, afourth-quarter storm, the after-tax estimate for third-quarterstorms is now estimated to be 500 million euros, or $600 million,higher than the figure reported in last month's third-quarterearnings.

On Nov. 7, Munich indicated that third-quarter storms--Dennis,Emily, Katrina and Rita--would cost 1.1 billion euros, or $1.3billion, after retrocessions and before taxes. On the same day,Munich said the after-tax impact on third-quarter results was 750euros, or $889 million.

On a pre-tax basis, Munich today gave the following estimatesfor each of the major storms:

o Katrina--just over 1.6 billion euros, or $1.9 billion pre-tax.This raises the November estimate by 815 million euros, or $966million.

o Rita--unchanged at 250 million euros, or nearly $300million.

o Wilma--set at 330 million euros, or roughly $390 million.

The total pre-tax storm figure, almost 2.3 billion euros, or$2.7 billion, includes an incurred-but-not-reported provision forcontinued uncertainties of 600 million euros, or more than $700million, Munich reported.

The company said that despite record losses fromcatastrophes--including the October earthquake in Kashmir--Munichexpects to meet its targeted returns for 2005 and to pay a dividendof 3.1 euros, or $3.67, per share (up from 1.1 euros, $1.30).

Detailing some reasons for the delayed notifications andincreased estimated Katrina losses, Munich said that the fullextent of considerable flood losses covered under commercial andindustrial policies emerged gradually, and that unrestricted accessto New Orleans has only been possible since the beginning ofDecember. The difficulty in gaining access to New Orleans causeddelays in surveying business interruption and building losses,Munich said. It added that post-Rita and Wilma price and demandincreases for building materials were another factor.