$333.1M in Sandy-Caused Losses at Validus; Up to $25M for Navigators

Superstorm Sandy is expected to result in a net negative impact of 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 quarter results at Validus since the Pembroke, Bermuda-based company’s acquisition of Flagstone was completed after the storm.

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

The $333.1 million tally is after reinstatement premiums and reinsurance, 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 group operating in the Lloyd’s insurance market through Syndicate 1183.

“Hurricane Sandy was a large, complex loss event impacting our business across all of our operating segments and through multiple classes,” says Validus CEO Edward J. Noonan, in a statement. We see this as being both unique and difficult for our clients to reserve.”

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

 

Navigators Group

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

The New York-based specialty insurer says the preliminary tally includes estimate of claims and claim expenses, reinsurance recoveries, and reinstatement premiums.

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

Comments

Resource Center

View All »

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

More Data, Earlier: The Value of Incorporating Data and Analytics...

Incorporating more data earlier in claims lifecycles can help you reduce severity payments by 25%*...

How Many Of Your Clients Are At Risk Of Flood?

Every home is vulnerable to flooding. Learn four compelling reasons why discussing flood insurance with...

Gauging your Business Intelligence Analytics Capabilities and the Impact of...

Big Data, Data Lakes and Data Swamps, How to gauge your company's Big Data readiness....

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.