NU Online News Service, Dec. 6, 1:34 p.m. EST

The lack of hurricanes making U.S. landfall this season is credit positive for reinsurers, according to Moody's Investors Service, as 2010 experienced worldwide natural catastrophe losses about in line with the average over the last 20 years.

Moody's said the lack of hurricanes hitting the U.S. will support the 2010 underwriting results of firms that have otherwise experienced significant catastrophe losses elsewhere in the world, including European Windstorm Xynthia and earthquakes in Chile and New Zealand.

While 2010 losses are about in line with the average over the last 20 years in 2009 dollars--losses are expected to be approximately $36 billion, according to Swiss Re--Moody's noted, "Clearly, the absence of major losses during 2010's hurricane season prevented above-average losses from being worse."

Despite the lack of losses, the hurricane season itself was active. In an analysis of November catastrophe losses issued by Aon Benfield's Impact Forecasting team, Steve Jakubowski, president of Impact Forecasting, said, "While the 2010 Atlantic Hurricane Season has officially come to an end and the United States did not see a land-falling hurricane for the second consecutive year, the season will go down historically as the third-most active on record."

Moody's noted that pre-hurricane season predictions regarding the number of storms turned out to be largely accurate, with the National Oceanic and Atmospheric Administration (NOAA) coming very close to hitting the actual outcome. The season saw 19 named storms, 12 hurricanes and five major hurricanes. NOAA predicted 18 named storms, 11 hurricanes and five major hurricanes.

While noting that such predicted activity "would have suggested at least a few hurricanes making U.S. landfall," Moody's noted that the actual outcome helps explain why experts generally limit forecasts to number and severity of storms, rather than the paths they will take.

As for catastrophes in November, the Aon Benfield report noted about $15.5 million in insured losses for a flood in Britain's Cornwall region that damaged more than 1,000 homes, businesses, schools and bridges.

Larger floods across Europe due to heavy rains also occurred, with no insured loss estimate as of yet.

Heavy snow across parts of the UK, Germany, Poland, France, Italy, Russia, Albania, Spain, Norway, Denmark, Portugal, the Czech Republic and the Balkans left 40 people dead and caused at least $2 billion in economic damages in Britain alone, Aon Benfield said.

In the U.S., severe thunderstorms across the Southeast, Great Lakes and Mid-Atlantic states caused expected insured losses of around $25 million.

In Asia, Cyclone Jal made landfall just north of Chennai, India, and caused economic losses of around $224 million. Flash flooding in parts of Thailand, India and Vietnam caused economic losses of around $1.72 billion in India and Thailand alone, Aon Benfield said.

Special Reports /

Reinsurers Benefit From Quiet Hurricane Season; Nov. Sees Heavy Flooding

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