Aspen Insurance Estimates Cat Losses of $60 Million From April and May Storms

Aspen Insurance Holdings Ltd. is estimating losses of about $60 million, net of applicable reinsurance, reinstatement premiums and tax, from the storms that swept the middle and Southern United States in April and May.

Aspen said its ultimate losses could vary from the estimates because they are mainly based on a review of individual treaties and policies expected to be impacted, discussions with clients and brokers and judgment by management.

The majority of the company's net loss estimate comes from its reinsurance segment, Aspen said in a statement. The company said its loss estimate is consistent with an industry loss for these events of $15 billion.

The two major outbreaks of tornadoes this year are the costliest on record, amounting to $7.7 billion to $12.5 billion in insured losses, said Shiraj Khan, senior engineer at AIR Worldwide (BestWire, June 6, 2011).

Recent companies that posted major catastrophe losses include:

-- W. R. Berkley, with estimates of $65 million (BestWire, June 22, 2011);

— State Farm, $1.75 billion in storm claims, (BestWire, June 17, 2011);

— Allstate Corp., with pretax catastrophe losses from 20 events totaling $2 billion (BestWire, June 16, 2011);

— Travelers Cos., which expects $1 billion to $1.05 billion in losses (BestWire, June 10, 2011); and

— Chubb Corp., with estimates of $250 million to $310 million before tax (BestWire, June 21, 2011).

Aspen Insurance Ltd. has a current Best's Financial Strength Rating of A (Excellent).

Shares of Aspen (NYSE: AHL) were trading on the morning of June 23 at $24.91, down 2.24% from the previous close.

(By Caroline Saucer, editor, BestWeek: [email protected])