Up to $15m in Q3 Catastrophe Losses for Alterra

Specialty insurer Alterra Capital Holdings tells investors it expects third-quarter catastrophe losses of between $10 million and $15 million.

The Bermuda-based insurer says a majority of the losses are from Hurricane Isaac, which struck the Gulf States at Louisiana on Aug. 28.

In addition to Isaac-related losses, Alterra says its net underwriting loss related to crop damage from drought in the U.S. will be about $22.5 million.

Estimates are pretax and net of reinsurance and reinstatement premiums.

Alterra is scheduled to release third-quarter earnings Nov. 6 after the market closes.

Last year Alterra booked a third-quarter profit of $48.4 million (compared to $82.8 million for the 2010 third quarter) while recording $42.8 million in catastrophe losses, mostly from Hurricane Irene.

Crop losses are expected to hit other insurers in the third quarter.

PartnerRe says it expects about $63 million in net after-tax losses in its North American Agriculture portfolio due primarily to drought conditions in the U.S.

Allied World expects $40 million of drought-related crop reinsurance losses and expenses for the third quarter as well as between $5 million and $10 million in losses from Hurricane Isaac.

Evan Greenberg, chief executive officer of Ace, said during a conference call on second-quarter earnings that the company's best guess for third-quarter crop losses was nearly $70 million.

At the end of July, American Financial Group dropped its earnings guidance over potential losses in its crop-insurance line.