Second Quarter Light on Catastrophes

Only six catastrophes were reported in 2007's second quarter (April-June), making it one of the lowest totals in the last 10 years.

As reported by the Insurance Services Office's Property Claim Services (PCS) unit, U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $2.18 billion for second-quarter property losses resulting from the six catastrophes, which affected 25 states. This total ties the record for the second-lowest number of catastrophes in a second quarter in the past 10 years, according to preliminary analysis by PCS.

At $435 million, Texas topped the list of the five most severely affected states, followed by Minnesota at $322 million, Kansas at $210 million, New Jersey at $160 million, and New York at $130 million, PCS reported. The costliest event of the quarter — caused by strong winds, large hail, tornadoes, and flooding — occurred in mid-April and affected 18 states and the District of Columbia. The current PCS estimate of insured property damage for this event alone is $1.23 billion.

PCS estimates the six catastrophes of second-quarter 2007 generated 504,000 insurance claims. As of July, the estimated number of claims made in 2007 is 709,000.