NU Online News Service, June 28, 2:41 p.m. EDT
Tower Group Inc. says it expects $8 million in pre-tax losses from U.S. storms in April, May and early June.
The New York-based property and casualty insurer says it expects the weather-related losses will reduce its second-quarter earnings by $0.13 per share, and adds that it expects operating earnings per share to be at the lower end of its previously announced range of $2.70 to $2.90.
Overall, losses from thunderstorms in April and May reached about $15 billion, says Aon Benfield, the global reinsurance intermediary of Aon Corp.
Catastrophe risk modelers estimate insured losses of between $2 billion and $6 billion for the late-April tornado outbreak. AIR Worldwide adds up to $7 billion in losses due to late May storms.
Bermuda-based Arch Capital Group Ltd. says losses from second-quarter events—including the storms as well as the most recent New Zealand earthquake—combined with updated first-quarter estimates are expected to total between $90 million and $110 million. Arch says approximately 85 percent of that range relates to second-quarter events.
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