Seattle-based insurer Safeco said losses from last month's Oregon and Washington windstorms will amount to an estimated $30 million in catastrophe losses, costing it $20 million after-tax, or 18 cents per share.
The carrier said the figures represent estimated losses both from claims received through Jan. 4 and from future expected claims from policyholders with storm damage from this event.
"December's windstorm was the worst to hit the Pacific Northwest in more than a decade," said Paula Reynolds, Safeco president and chief executive officer, in a statement.
Safeco said Friday it already has made partial or full payments on the majority of its December windstorm claims reported to date. It added that members of the company's national catastrophe team have remained in the Northwest to continue their work.
Safeco estimated windstorm losses based on the value of property in areas with storm damage, its knowledge of severity and reporting patterns from past storms, damage projections based on wind speed, anticipated costs for a surge in demand for goods and labor to complete repairs, and other factors requiring considerable judgment.
The storms hit during the busy holiday season and created prolonged power outages in the Puget Sound area, causing some policyholders to delay reporting claims, the company said. Due to the severity of the storm and the preliminary nature of the information, the loss estimate could rise, Safeco added.
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