Bermuda-based insurer ACE Limited said that it estimates losses from Hurricane Wilma will cost $250 million net of taxes and reinsurance premiums.
The $250 million Wilma loss is on top of estimated losses of over $742 million from Hurricanes Katrina, Rita and Dennis that ACE reported in its third-quarter financial report.
Rita, with winds exceeding 131 miles an hour, was the last major hurricane in what has turned out to be a record season with 26 named storms.
Those losses resulted in ACE reporting a third-quarter net loss of $112 million.
Jersey City, N.J.-based Insurance Services Office Inc. estimates that total losses for insurers from this year's hurricane season will amount to $50.3 billion, making it the most expensive hurricane loss season on record.
One victim of this past hurricane season, the energy industry, got a piece of good news yesterday after rating service Standard & Poor's announced it has removed Oil Casualty Insurance, Ltd. (OCIL) from CreditWatch and affirmed both its financial strength rating and counterparty credit rating of "A-minus."
S&P said OCIL received a total of 24 claim notices related to Hurricanes Katrina and Rita. In the worst case scenario, the insurer would be expected to pay a claim of $62.5 million net of reinsurance, S&P said.
"We believe that OCIL's exposure due to Hurricanes Katrina, Rita and Wilma will be limited to the one claim that is currently under active investigation, and this is the basis for the removal of the CreditWatch," explained S&P credit analyst Mohammed Ashab in a statement.
The Bermuda-based insurer was formed in 1986 to serve the energy industry.
One Lloyd's syndicate did not receive good news today as Moody's rating service placed syndicate number 2020, Wellington Underwriting Agencies Ltd., on review for possible downgrade. Moody's said it is concerned with the risk management of losses from Hurricane Katrina. With the losses from Katrina, Rita and Wilma, claims losses are expected to amount to 37 percent of the syndicate's capacity.
Moody's gave the syndicate a financial strength rating of "A1."
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