Endurance Estimates US Tornadoes: $55 Million
Bermuda based re/insurer Endurance Specialty Holdings Ltd. yesterday [May 18] announced its initial loss estimate related to the tornadoes in April 2011 that impacted Alabama, Arkansas, Georgia and Virginia to be between $45 million and $55 million.
The losses were predominantly driven by Endurance’s catastrophe reinsurance book of business and were related to reinsuring regional homeowner and farm mutual insurance companies in the Southeast U.S.
Endurance’s loss estimate is pre-tax and net of reinsurance and reinstatement premiums. Endurance’s loss estimate is largely derived from a combination of its proprietary catastrophe modeling, standard industry models, a review of in-force contracts and preliminary indications from clients and brokers.
To date, reported claims as a result of the April tornadoes have been limited; accordingly, actual losses may ultimately differ materially from initial estimated losses.
