Specialty insurer Alterra Capital Holdings tells investors it expects third-quarter catastrophe losses of between $10 million and $15 million.
The Bermuda-based insurer says a majority of the losses are from Hurricane Isaac, which struck the Gulf States at Louisiana on Aug. 28.
In addition to Isaac-related losses, Alterra says its net underwriting loss related to crop damage from drought in the U.S. will be about $22.5 million.
Estimates are pretax and net of reinsurance and reinstatement premiums.
Alterra is scheduled to release third-quarter earnings Nov. 6 after the market closes.
Last year Alterra booked a third-quarter profit of $48.4 million (compared to $82.8 million for the 2010 third quarter) while recording $42.8 million in catastrophe losses, mostly from Hurricane Irene.
Crop losses are expected to hit other insurers in the third quarter.
PartnerRe says it expects about $63 million in net after-tax losses in its North American Agriculture portfolio due primarily to drought conditions in the U.S.
Allied World expects $40 million of drought-related crop reinsurance losses and expenses for the third quarter as well as between $5 million and $10 million in losses from Hurricane Isaac.
Evan Greenberg, chief executive officer of Ace, said during a conference call on second-quarter earnings that the company's best guess for third-quarter crop losses was nearly $70 million.
At the end of July, American Financial Group dropped its earnings guidance over potential losses in its crop-insurance line.
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