Greenwich, Conn.--based insurer W. R. Berkley Corporation said after-tax storm losses would amount to $41 million from Hurricanes Ike, Gustav and Dolly, and wind and hail events in the Midwest. The losses would translate into 24-cents a share.

Berkley yesterday estimated its third quarter operating income per share, including storm losses, to be in the range of 70-cents to 75-cents and its GAAP net loss per share to be in the range of 15-cents to 20-cents.

Operating income is a non-GAAP financial measure defined by the company as net income or loss excluding realized investment gains and losses.

Its loss estimate is net of reinsurance and includes both reinstatement premiums and estimated assessments from the Texas Windstorm Insurance Association.

The company said its estimate also includes after-tax net realized investment losses, including impairments, of $143 million, or 85-cents per share. The estimated investment loss relates primarily to write downs for other-than-temporary declines in fair value of preferred equity holdings in Fannie Mae and Freddie Mac.

Berkley estimates that its net unrealized losses increased by $116 million for investments and by $33 million for currency translation adjustments in the third quarter of 2008. The increase in unrealized investment losses was primarily related to the impact of widening credit spreads across all fixed income sectors.

The company said it does not invest in CDOs, CLOs or similar financial products, has never been a party to any credit default swap and does not engage in securities lending.

Berkley reported holding approximately $4 million of fixed maturity securities issued by insurance operating subsidiaries of financially troubled American International Group and has no exposure to securities issued by bankrupt Lehman Brothers Holdings Inc.

The company estimated its stockholders' equity per share to be in the range of $18.80 to $18.90 at Sept. 30.

Berkley said it is well-capitalized and has no need to raise capital to support its current operations and each of the major rating agencies has affirmed the company's ratings in the past several weeks.

The company will release its third quarter earnings report after markets close on Oct. 28.

Special Reports /

W.R. Berkley Says Hurricanes Will Cost It $41M

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