A financial analyst says losses from Superstorm Sandycould be even higher than Risk Management Solutions' $20 billion to$25 billion estimate once infrastructure losses are factoredin.

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Meyer Shields with Stifel Nicolaus cites damage to New YorkCity's transit system as a loss that could drive the ultimate totalhigher than current estimates.

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Vincent M. DeAugustino, an associate analyst for StifelNicolaus, says that the assessment that the transit system lossescould make storm losses higher comes from the transit system'sexperience with Hurricane Irene last year. He says MTA losses wereshared between FEMA and private insurers, pirmarily AmericanInternational Group and Lloyd's. He says the assumption is that thesame would be expected with Sandy.

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The MTA is self-insured, but has a reinsurance program in place.

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Shields also says he expects New York and New Jersey to accountfor 90 percent of Sandy losses.

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Shields does not believe Sandy will alter the gradual rateincreases the industry has been experiencing, but he says “modest”reinsurance pricing increases in homeowners and Northeast propertyand casualty lines could result from the storm.

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Among insurers, Chubb, Travelers, Hanover and The Hartford areexpected to take a significant hit from Sandy due to their highexposure in the region, Shields says.

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This story was updated on Nov. 21 at 1:45 p.m. EST withcomments from DeAugustino.

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