The Travelers Companies, Inc. released a preliminary estimate of net losses relating to Superstorm Sandy of approximately $650 million after tax and after estimated recoveries from reinsurance.
Travelers says the $650 million estimate released today reflects a gross loss estimate (pre-tax and before reinsurance) of $1.135 billion.
The company says that, “This preliminary estimate is based upon an analysis of claims already reported and projected to be reported, estimated values of properties in the affected areas, estimates of damage resulting from wind and other perils, including flooding to the extent covered by applicable policies, and other factors requiring considerable judgment.”
Travelers says that because of the nature of the late October event, the number of insureds impacted, “the complexity of factors contributing to the losses and the preliminary nature of the information available to prepare these estimates, future estimates of losses and the actual ultimate amount of losses associated with Storm Sandy may be materially different from this current estimate.”
The company says that it plans to resume repurchasing its common shares after temporarily suspending the practice post Sandy while it assessed its exposure.
In late November, AIR issued an insurance industry loss estimate of up to $22 billion, making Sandy at least one of the top five catastrophe losses in history. Economic loss has been pegged at around $50 billion.
Another recent report notes that auto physical damage for Sandy could hit at least 230,000 vehicles with New York and New Jersey accounting for close to 200,000.
Travelers, is ranked seventh in insurance market share for auto physical damage in the New York and New Jersey markets, according to data from SNL.