Bermuda-based Aspen Insurance Holdings released its third estimate of hurricane net losses this morning putting the likely after-tax impact in the $470-to-$535 million range.
The total includes a $27 million increase over prior estimates for Hurricanes Katrina and Rita, and an initial estimate for Wilma in the range of $20-to-$35 million.
In early September, Aspen released an initial estimate of Hurricane Katrina net losses of $150 million. But the insurance and reinsurance group more than doubled the figure a month later--putting the estimate in the $325-to-$400 million range. In the October announcement, Aspen also estimated that its Rita losses would fall in the $50-to$60 million range.
The latest figures exclude the impact of potential recoveries from a catastrophe swap contract placed with a non-insurance counterparty, with a maximum recoverable of $100 million, which would kick in if the level of industry losses as determined by Property Claims Services from Hurricane Katrina in the continental United States exceeds $39 billion.
Aspen said its estimates reflect a combination of ground-up evaluations, information available to date from brokers, the application of Aspen's catastrophe modeling systems, market intelligence, initial tentative loss reports and other sources.
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