ACE Takes $480M 3Q Cat Hit
By Steve Tuckey
NU Online News Service, Oct. 13, 2:28 p.m. EDT?Bermuda-based ACE Ltd. said it expects total net catastrophe-related charges for the third quarter to approximate $480 million on a pre-tax basis.[@@]
The charge includes the previously announced $100 million estimate from Hurricane Charley. The company also now expects the combined ratio to rise five points from between 88 percent and 90 percent to between 93 percent and 94 percent.
Another Bermuda company, Aspen Insurance Holdings Ltd., said the four hurricanes will have a negative impact on third-quarter earnings of about $135 million, net of reinsurance taxes. The estimates are based on the company's view of total industry exposures and an extensive review of client exposures.
Seattle-based Safeco announced Tuesday it expects to take a $127 million third-quarter hit to earnings stemming from the four named hurricanes to strike Florida this year.
The company estimates that of its expected $195 million estimated pre-tax catastrophe loss, $183 million will stem from hurricanes.
Safeco's previous estimate of $73 million from the first two storms, Charley and Frances, has now been raised $117 million due to larger and more severe losses.
Last week company president Mike LaRocco said the company will waive multiple deductibles for homeowners hit by more than one storm. But he also noted that rates will have to go up in the state to maintain a viable market.
Peoria-based RLI-Corp. said it expects to report $12.4 million cumulative from the four hurricanes.
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