|PR Newswire Association LLC|
Pre-tax estimates of Sandy catastrophe losses are shown in the following table.
($ in millions)
Total, gross of reinsurance
Total, net of reinsurance
The total gross loss estimate by state is 66% in
Loss estimates are generally based on claim adjuster inspections and the application of historical loss development factors to the extent we have been able to complete inspections in areas impacted by Sandy. Our loss estimates for Sandy are calculated in accordance with the coverage provided by our policies. Our homeowners policies specifically exclude coverage for losses caused by flood, but generally provide for coverage for physical damage caused by wind or wind-driven rain. Therefore, our homeowners estimates do not include estimates for losses caused by flood. Auto policyholders generally have coverage for physical damage due to flood if they have purchased optional auto comprehensive coverage.
Our catastrophe reinsurance program comprises several agreements. For a first event, our nationwide reinsurance agreement (which excludes
Forward-Looking Statements and Risk Factors
This news release contains forward-looking statements about catastrophe losses. These statements are based on our estimates and assumptions that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Management believes the estimated impact of catastrophe losses, including net loss reserves, are appropriately established and recorded based on available facts, information, laws and regulations. However, actual results may differ materially from those projected in the forward-looking statements in this news release and from the amounts currently recorded for a variety of reasons, including the following:
- Our policyholders' ability to report and our ability to adjust claims have been impeded by the extent of the devastation and the number of areas affected.
- It is particularly difficult to assess the extent of damage in the initial stages of adjusting residential property losses.
- Our estimate for the ultimate costs of repairs may prove to be incorrect because of increased demand for services and supplies in the areas affected by the catastrophes.
- The number of incurred but not reported (IBNR) claims may be greater or less than currently anticipated.
We assume no obligation to update any forward-looking statements as a result of new information or future events or developments.