Lloyd's insurers report Superstorm Sandy losses

Insurers are counting the cost of Superstorm Sandy, which struck the USA and Canada on 29 October, causing extensive damage.

Catlin Group said that it currently estimates its Sandy related losses at approximately $200m (£123m), net of reinsurance and reinstatements. The group anticipates that it will have a fuller understanding of the losses caused by the storm when it reports its 2012 full-year results.

Novae Group also provided a preliminary assessment of the cost of the storm, pegging the net cost to the group at about $25m-$30m, based on a $20bn industry-wide insured loss. The company said that this is some £5m-£8m above the normal allowance for catastrophe losses in Q4, with an equivalent implied effect for the group’s profit before tax for 2012.

Hiscox estimated its losses to be approximately £90m, and was within Hiscox’s overall budgeted loss expectations for the year, though added that “considerable uncertainties still exist around the impact of Superstorm Sandy”, and said its estimate was based on an insured market loss of $20bn.