Everest Re has upped its loss estimates for Hurricanes Katrina, Rita and Wilma by £200m to $1.2bn, net of reinstatements.
Total pre-tax losses from these events had previously been estimated at $1bn. Everest Re said that as a result of the increased loss estimates on these storms, the company will experience a more significant full-year loss than had originally been anticipated.
For the full year 2005, the net after-tax impact of these storms is estimated at $962m.
For the fourth quarter of 2005, including the previously announced loss estimate for Hurricane Wilma, losses arising from these storms are now estimated at $395m on an after-tax basis.
Joseph V Taranto, Everest's chairman and CEO, said: "Despite the significance of these losses, we believe that the company's fundamentals remain strong and we expect Everest will end 2005 with its largest ever capital base and superb positioning for 2006 market opportunities.
"We are very disappointed with the 2005 hurricane losses but note that ours is a risk business offering value to clients through a willingness and capacity to shoulder risk over the long term - a business proposition thoroughly demonstrated in 2005."
