NU Online News Service, Nov. 8, 9:36 a.m. EST

The freak October snowstorm that dumped more than 2 feet of snow in somelocations is expected to be a major capital or credit event for theproperty and casualty insurance industry, says credit ratingservice Moody's.

The Oct. 29 storm knocked out power to close to two millionhomes and businesses at its height over a six-state region.

The storm is expected to result in economic damage in excess of$1 billion.

Moody's says the storm is credit negative for P&C insurersin the U.S. and is expected to adversely affect earnings “during ayear of unprecedented catastrophe losses.”

Tree damage is expected to be substantial as the storm piledsnow on leaf-covered trees. The weight of the snow snapped manylimbs and huge branches, which produced damage to homes and carsfrom downed trees and limbs.

Debris removal and auto accidents add to the tally ofdamages.

There may also be “time-element” claims such as reimbursementfor additional living expenses—such as hotel stays—for thosedisplaced from their homes during the power outage, Moody'ssays.

While no damage estimates have yet to be released, losses areexpected to be substantial and will add more pressure to 2011earnings that have already suffered from a number of weatherrelated events loss events this year, the rating agency adds.

By Wednesday last week, NU Online News Service reported a number of insurers were receiving a large number ofclaims. In addition, the Insurance Services Office's VeriskAnalytic's Property Claim Services declared the event acatastrophe—meaning insured losses will exceed $25 million inConnecticut, Massachusetts, New Hampshire, New Jersey, New York,Pennsylvania. States of emergency were declared in each state.

Insurers with a large presence in the Northeast are most exposedto claims resulting from the storm, Moody's says.

According to SNL Financial, the top fivepersonal-lines insurers (home and auto) in the most-affectedstates in 2010 were Allstate Insurance Group, State Farm Group,Berkshire Hathaway Insurance Group, Liberty Mutual Insurance Groupand Travelers Group.