Allmerica Financial Corporation said despite estimated HurricaneKatrina and Hurricane Rita losses of $170 million, it is declaringa dividend payment of 25 cents a share.

|

The Worcester, Mass.-based insurer said it estimates itsafter-tax loss from Hurricane Katrina will be approximately $140million, or $2.62 a share for the third quarter. The after-tax lossof $140 million is net of reinsurance and includes the cost ofreinsurance reinstatement premiums, loss adjustment expense, aswell as an estimate for the Louisiana Citizens Fair Planassessment, the company said.

|

The company said its estimate is based on the best availabledata but warned the figure could go higher.

|

Allmerica estimates its gross direct loss and loss adjustmentexpense from Katrina to be $485 million. Approximately two-thirdsof the loss would be sustained in its commercial lines business andone-third to its personal lines business.

|

Hurricane Rita is expected to cost the company approximately $30million on a pre-tax basis and $19.5 million after taxes, or 37cents a share.

|

The company also announced it would pay an annual dividend of 25cents a share on common stock of the company, payable Dec. 12 toshareholders of record at the close of business Nov. 28.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.