Personal Lines

State Auto Financial Corporation says it expects between $60 million and $63 million in third-quarter catastrophe losses.

The eastern end of Long Island suffered the highest insured losses in the United States from late August's Hurricane Irene, followed closely by a coastal county in North Carolina, financial data company Verisk Analytics said on Monday.

As reserve releases slow, accident-year losses rise, and investment yields weaken, property and casualty insurers may need to reconsider cost reductions in the form of cutting salaries and advertising budgets to improve profitability, according to a Keefe, Bruyette & Woods industry update.

Losses from Hurricane Jova, which struck the Pacific coast of Mexico this week, are estimated to be less than $52 million, says catastrophe modeler AIR Worldwide.

Montpelier Re Holdings Ltd. estimates its third-quarter catastrophe losses will stand at around $60 million before taxes, and along with other carriers, reported cat insurance losses are well over $500 million for the past two weeks.

Its easy to understand why an insurer with a less-sophisticated rate structure might see imitation ratemaking as a convenient solution. But it has many costs and considerable business risks.