CATCo On Latest PCS Sandy Loss Estimates
Bermuda-based CATCo Reinsurance Opportunities Fund Ltd. released an update with regard to the latest Hurricane Sandy loss estimate issued by Property Claim Services [PCS].
PCS — an independent company which investigates reported disasters and determines the extent and type of damage –has issued a third re-survey loss estimate based largely on a follow-up with affected insurers.
The updated loss estimate was $18.75 billion, which remains unchanged from their second re-survey loss estimate released on March 22.
The largest and deadliest storm of the 2012 hurricane season, in the US Sandy affected 24 states, including the entire eastern seaboard from Florida to Maine.
There was particularly severe damage in New Jersey and New York.
Sandy’s storm surge hit New York City on October 29, flooding streets, tunnels and subway lines and cutting power in and around the city.
“As this third re-survey loss estimate is equal to the prior two re-surveys, PCS would ordinarily label this loss estimate as ‘final’ at $18.75 billion, which would then lead to a final settlement of all of CATCo-Re’s Industry Loss Warranty contracts exposed to Hurricane Sandy,” said CATco in a statement. “However, PCS has elected to allow for one more re-survey within 60 days due to the complexity and severity of this event.
“The existing retrocessional reinsurance loss reserve provision that is included in the company’s Net Asset Value calculation is based on an insured industry loss of $20 billion. The board of directors remains of the opinion that there is no need to amend the existing retrocessional reinsurance loss reserve provision that is currently in place.”
CATCo Investment Management Ltd. is a specialist investment management business based in Bermuda.
