The ISO unit, it was explained, typically re-surveys catastrophe losses after it issues preliminary estimates if losses exceed $250 million or specific circumstances of a catastrophe require more comprehensive appraisal and additional analysis.

ISO said six catastrophes struck 23 states in the fourth quarter, causing an estimated $1.7 billion in losses. It's the second-highest loss for any fourth quarter in the last 10 years.

PCS estimated that insurers received nearly 540,000 claims from homeowners and businesses in the quarter, which accounts for the highest number of claims in any fourth quarter since 1998.

Catastrophe losses in 2002 were 50 percent below the 10-year average for insured-property losses of $11.5 billion per year, PCS's year-end analysis found. Last year's 25 catastrophes were also well below the 32-events-per-year average of the last 10 years.

The $5.8 billion figure for insured-property losses from catastrophes compares with $2.6 billion in 1997, $4.6 billion in 2000 and $5.6 billion in 1993.

In 2002, 40 states sustained insured-property damage from catastrophes. Kentucky led with $885 million in losses, followed by Texas with $630 million, Louisiana with $555 million, Maryland with $289 million, and Ohio with $275 million.

The full year recorded 25 natural disasters that produced 1.8 million claims--the third highest in claims in the past five years.

ISO's PCS unit defines a catastrophe as an event that causes $25 million or more in insured-property losses and affects a significant number of property-casualty policyholders and insurers.

PCS estimates represent anticipated insured loss on an industry-wide basis arising from catastrophes, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, business interruption and additional living expenses. The estimates exclude loss adjustment expenses.

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