Houston-based HCC Insurance Holdings, Inc. says fourth-quarter catastrophe losses will likely be between $30 million and $35 million, and the company’s chief executive warned of substantial rate increases in the future.
The $30 million-plus figure is after reinsurance and reinstatement premium, and is pretax. The company says the losses relate to Superstorm Sandy and primarily impact the company’s property-insurance business.
HCC adds that the ultimate loss from Sandy may differ materially from its current estimate because of “uncertainties involved at this early stage, the complexities of the nature of the event and the ongoing collection of information.”
In a statement, John N. Molbeck Jr., HCC’s CEO says that Sandy “will result in a re-evaluation of exposure in the northeast, and we anticipate this re-evaluation will result in meaningful price increases.”