The insurance industry has yet to find calm financial waters in the aftermath of Hurricane Katrina as companies continue to adjust losses and rating agencies try to understand the future health of the individual players.
Chapel Hill, N.C.-based James River Group Inc. increased its loss range estimate from $2-to-$2.6 million to $14-to-$16 million, or $1 to $1.18 per diluted share, net of reinsurance and including reinsurance reinstatements, the company said.
James River said its initial estimate was based on catastrophe modeling estimates. But specific account information indicates losses to be greater than the models. The company also said it expects the losses to be greater than its reinsurance limits treaty. A portion of the loss in excess of the carrier's cat reinsurance limits will be shared with the company's quota share reinsurer.
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