Charley Continues To Hit Insurers

Charley Continues To Hit Insurers

NU Online News Service, Aug. 30, 3:34 p.m. EDT?Insurers are continuing to report their losses from Hurricane Charley, though the two latest were minor compared to earlier company reports.[@@]

Cincinnati-based American Financial Group Inc. reported it expects an approximate hit of $8 million in losses from the storm that struck Florida on Aug. 13.

The company said its estimate is after tax losses, net of reinsurance. All the claims, the company said, were from commercial policies in Florida.

The company added that its earning guidance would be between $2.85 and $3.10 per share, including the losses from Charley.

Penn-America Group Inc. of Hatboro, Pa., said it estimated its losses would not exceed $1 million.

The company said it provides small business insurance through the excess & surplus lines market to wholesalers in small towns and rural areas.

The losses are small in comparison to those reported so far by CNA and Nationwide. CNA said it estimates a hit of between $40 million and $60 million, while Nationwide said it is looking at $400 million in losses from the storm.

The Insurance Services Office said last week that its claims division, Property Claims Services, has placed losses at $6.8 billion, making it the second costliest Hurricane next to Andrew, which struck South Florida in 1992 causing $20.3 billion in losses. PCS said it would be taking another survey of claims losses in 60 days after more claims are filed and amended.

ISO added that business claims are more than anticipated, accounting for 40 percent of the $6.8 billion. It said that while businesses account for only 20 percent of the claims filed, the cost of the claims is greater.