Three additional insurers reported losses from Hurricanes Katrina and Rita in the third quarter, which in total could amount to more than $160 million, though much of that figure would be assumed by reinsurance.
Horace Mann Educators Corporation, a Springfield, Ill.-based multiline insurer, reported gross estimated losses from Hurricane Katrina alone would be between $65 million and $75 million. Pretax losses from Rita are estimated between $8 million and $10 million, and losses from other catastrophic storms in the third quarter are an estimated $10-to-$12 million.
Horace Mann said the company would take a financial hit between $29 million and $33 million pretax, net of reinsurance recoveries, from Katrina and Rita.
The impact of the catastrophes reduced the company's 2005 net income estimate by 10 cents a share, from $1.80 to $1.90 per share to $1.70 to $1.80 per share.
Cincinnati Financial Corporation said it estimates its third-quarter pretax catastrophe net loss at $66 million, including assumed and ceded reinsurance. The company estimates it will report $52 million in losses from Katrina, which includes $16 million to be a reinsurance participant in a Munich Re Group reinsurance program, and $3 million from Rita.
Cincinnati estimated its policyholders' losses from Katrina at $70 million, $36 million of which would be ceded to reinsurers.
Ohio Casualty Corporation, of Fairfield, Ohio, put net catastrophe losses for the third quarter at $11.6 million after-tax. The company estimates losses from Hurricane Rita would be $9.8 million and Katrina at $1.4 million.
The companies said the estimates are based upon the combination of real and anticipated claims, and are subject to change. The figures also include reinsurance restatements.
Cincinnati Financial said it has received 1,964 claims resulting from Katrina and Rita as of Oct. 13. The company said its agents do not market insurance in Louisiana, Mississippi and Texas. The losses are commercial losses resulting from commercial accounts written by agents in other states to cover locations and vehicles in multiple states.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.