Lancashire Estimates Sandy Cost At $40-60M
Bermuda-based Lancashire Holdings Limited estimates the net impact on its fourth quarter financial results from Sandy is likely to be in a range of between $40 million and $60 million.
This preliminary loss estimate has been derived from a combination of market data and assumptions, provisional loss advices, limited client loss data and modelled loss projections.
Lancashire said: “The estimate accounts for potential reinsurance recoveries and reinstatement premiums, but does not presently include any benefit from industry loss warranties that the Company has in place.
“The Company has $40 million of industry loss warranty cover, attaching at an insured market loss of $20 billion as reported by Property Claims Services.
This initial estimate involves the exercise of considerable judgment. Given the limited and preliminary nature of the data available, there is substantial uncertainty associated with the loss estimate, which therefore may be subject to revision
