Superstorm Sandy is expected to result in a net negative impactof about $333.1 million for Validus Holdings.

Validus says Sandy will cost Flagstone Reinsurance Holdings$39.1 million, but this impact will not affect the fourth quarterresults at Validus since the Pembroke, Bermuda-based company’sacquisition of Flagstone was completed after the storm.

Validus reached an agreement in August to buy Flagstone for about $623 million in cash and stock. Thedeal was completed Nov. 30—about one month after Sandy struck theNortheast.

The $333.1 million tally is after reinstatement premiums andreinsurance, retrocessional and other recoveries, says Validus.

About $256.2 million will be felt in the Validus Re segment and$79.6 million will come from the Talbot segment, a specialty groupoperating in the Lloyd’s insurance market through Syndicate1183.

“Hurricane Sandy was a large, complex loss event impacting ourbusiness across all of our operating segments and through multipleclasses,” says Validus CEO Edward J. Noonan, in a statement. We seethis as being both unique and difficult for our clients toreserve.”

Noonan says Validus’ estimate is based on industry-wide lossesof more than $25 billion, which, he adds, “exceeds industry lossestimates implied by the aggregate losses reported to us to date byour ceding clients.”

Navigators Group

Between $18 million and $25 million of losses are expected fromSandy at the Navigators Group.

The New York-based specialty insurer says the preliminary tallyincludes estimate of claims and claim expenses, reinsurancerecoveries, and reinstatement premiums.

Navigators says actual losses from Sandy will vary—maybesignificantly—from its preliminary estimate.