Allied World: Up to $75M in Losses for U.S. Storms

NU Online News Service, July 8, 2:05 p.m. EDT

Switzerland-based Allied World Assurance Co. Holdings says it expects between $65 million and $75 million in losses from second-quarter weather events in the U.S., and another $25 million in additional losses from revised first-quarter estimates.

Specialty insurer and reinsurer Allied World says the estimates are pre-tax and net of reinsurance recoverables.

In April, Allied World estimated $75 million in losses from the March 11 Japan earthquake and tsunami.

Overall, losses from tornado-spawning U.S. storms in April and May are expected to reach about $15 billion, according to 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.