XL To Take $139M Charge For Tsunami, Storm Claims
NU Online News Service, Jan. 21, 3:19 p.m. EST? XL Capital Ltd. reported that it expects to take an after-tax charge of some $139 million as a result of last month's devastating Indian Ocean tsunami and higher-than-expected losses from U.S. hurricanes.[@@]
The Bermuda-based company said that based on initial loss reports and preliminary estimates, it expects $75 million in pre-tax net losses from the tsunami that struck South Asia on Dec. 26, 2004.
About two-thirds of these estimated losses are expected to go to XL's insurance segment, with the rest attributable to its reinsurance segment. Most of the expected losses relate to property exposures with marine and motor as well as personal accident exposures.
Separately, XL Capital has revised up its estimate of expected losses from the unprecedented 2004 U.S. hurricane season. Previously, XL reported $446 million in estimated pre-tax losses?net of reinstatement premiums?for hurricanes Charley, Frances, Ivan and Jeanne.
Reinstatement premiums restore a reinsurance contract's limit to its full amount after payment of a large loss.
The company said it has now upped its estimate of expected pre-tax losses to about $520 million.
The impact of the Indian Ocean tsunami and the revised estimate losses from 2004 hurricanes will mean about $139 million in after-tax charge for XL. The charge will affect XL's fourth-quarter as well as full-year 2004 results, XL said.
The company plans to announce fourth-quarter and full-year 2004 results Feb. 9.
The XL Capital group of companies sells insurance and reinsurance coverages and financial products and services to industrial, commercial and professional service firms, insurance companies, and other enterprises.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
