NU Online News Service, Feb. 9, 11:30 a.m. EST
Flagstone Reinsurance Holdings says it expects an impact of between $50 million and $55 million on 2011 fourth-quarter results due to adverse development from catastrophe losses during the first half of 2011.
Additionally, based on an industry loss of between $15 billion and $18 billion, Flagstone Re says it expects a fourth-quarter loss of $13-to-$18 million from flooding in Thailand during the third and fourth quarters.
The Costa Concordia cruise ship disaster is not expected to affect Flagstone’s 2012 results, the Luxembourg-based global reinsurer says.
Flagstone reported a net loss for the 2011 third quarter of 59.5 million, compared to net income of $37.3 million in the 2010 third quarter.
In October, Flagstone Re announced a new business focus on property, property catastrophe and highest-margin short tail specialty reinsurance.
Flagstone also said it was going to sell its Lloyd’s of London and Island Heritage operations—a move that would reduce gross written premium about $300 million but not affect return on equity.
The reinsurer is scheduled to release fourth-quarter and year-end results on Feb. 21.