Chaucer has raised its original estimate of a £35m loss from Katrina to £47.5m.
Chaucer also provided an initial estimate of the combined cost of hurricanes Rita and Wilma which is calculated to be £20m, net of reinsurance and reinstatement premiums.
The insurer said the estimate in respect of hurricanes Rita and Wilma and the change to the Katrina estimate will have a combined impact on pre-tax profits for 2005 of £32.5m.
The total estimated impact of the three hurricanes on pre-tax profits for 2005 is £52.5m. Despite such losses, Chaucer said it remains confident that the year ending 31 December 2005 will be profitable.
The company said that in order to capitalise on improved rating environment the 2006 business plan has been revised, resulting in an increase in stamp capacity on syndicate 1084 from £400m in 2005 to £450m in 2006.
