Eqecat: Hurricane Irene Losses Up To $3.4B
Catastrophe modeling company Eqecat said the total insured losses from Hurricane Irene are estimated to range from $1.8 billion to $3.4 billion. The first major hurricane of the 2011 season, Irene caused widespread damage and approximately 40 deaths.
A statement released by the company said, “Hurricane Irene made three landfalls as it moved north along the US Atlantic Coast last week. The combination of Category 1 winds and heavy rainfall impacting the populous New England coast created the potential for significant insured losses.”
“Insured losses in the US from this event are estimated to range from $1.5 billion to $2.8 billion, with New York, New Jersey and Connecticut contributing about 60% of the losses from this event.”
“When added to the losses in the Caribbean, the total insured losses from Irene are estimated to range from $1.8 billion to $3.4 billion.”
Eqecat estimates that Irene caused in excess of $10 billion in economic damages in its traverse across the mainland US.
Based on preliminary insured loss estimates, Standard & Poor’s Ratings Services expects a “somewhat limited impact” from Hurricane Irene on the industry.
“We do not believe that the magnitude of this event is such that it will significantly influence the industry’s creditworthiness, and expect few, if any, rating changes as a result,” said Standard & Poor’s credit analyst Taoufik Gharib in a statement.
“We believe that this will affect primary insurance companies more than reinsurers because primary insurers generally retain greater property catastrophe risk at these loss levels.”
