$100 Million In Hurricanes Losses: Vesta Group
NU Online News Service, Oct. 7, 3:46 p.m. EDT?Vesta Insurance Group reported that its loss exposure for the four hurricanes that struck Florida could exceed $100 million.{@@]
Birmingham, Ala.-based Vesta said it estimates that its losses for the four storms run between $75 million and $105 million before reinsurance recoverables. The company said it has based its estimates on catastrophe simulation models and initial loss reports.
After recoverables, the total net loss is expected to be between $45 million and $55 million.
The company said it will receive $12 million cash from Dorinco Reinsurance Company from a disputed reinsurance agreement settlement. The company will record a one-time gain of $3 million in the third quarter.
United National Group, based in Georgetown, Cayman Islands, said its net losses from the four hurricanes would run between $1.5 million and $1.8 million. After-tax impact on earnings would run from $1.3-to-$1.5 million, or 4-to-5 cents per share.
The company is a specialty property-casualty insurer whose U.S. insurance subsidiaries write surplus lines or specialty admitted business in the U.S.
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