NU Online News Service, Jan. 25, 11:08 a.m. EST
Bermuda reinsurer Everest Re Group says it expects $245 million in fourth-quarter catastrophe losses, including an estimated $145 million in losses related to the flooding inThailand.
Estimates are after reinstatement premiums and taxes, the company says in a statement.
Everest Re plans to release 2011 fourth-quarter results on Feb. 8 after the market closes.
The amount of Thailand-related losses is $20 million more than the high-end range of expected losses the company announced in December.
The latest flooding estimate is based on a total industry loss of more than $15 billion, Everest Re says. Its previous prediction used an industry-wide loss estimate of between $10 billion and $15 billion.
Total catastrophe losses for the fourth quarter also include increased estimates of losses on earlier events in 2011, such as the Japan earthquake and tsunami and the February New Zealand earthquake. Additionally, the reinsurer says the quarterly loss estimate includes an added after-tax $32.5 million of catastrophe reserves.
Despite all of the loss-estimate increases, Everest Re says its surplus remains relatively unchanged.
Everest Re in December said it expected its after-tax loss related to the March earthquake and tsunami in Japanto increase by $26 million. The company said in April that it expected losses related to the twin catastrophes inJapan of about $320 million after taxes.
"2011 catastrophe losses have generated meaningful market-price corrections, which continued through January renewals," says Joseph V. Taranto, chairman and chief executive officer. "In order to fully realize these benefits in 2012 we have taken a cautious approach to reserving for these events as we close the year."
© 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.