Windstorm Estimates
08 October 2004
Amlin, the leading Lloyd's insurer, today released its estimates for losses relating to Hurricane and Typhoon events in the United States and Japan respectively.
2004 has been an exceptional year for Hurricanes and anticipated losses are higher than our business plan assumptions for such activity. Evaluation of the loss events is at a preliminary stage. The underlying event estimates for Hurricanes Charley, Frances, Ivan and Jeanne, together with Typhoon Songda, are for gross claims of $263 million which reduces to $133 million after reinsurance. This is approximately £30 million above our business plan assumptions included in our 2004 pre-tax profit projection, after taking into account a normal level of future catastrophe activity in the remainder of 2004.
Amlin writes a diverse portfolio of insurance business and this continues to perform very well, with little additional major loss activity. This should counterbalance much of the impact of these windstorm losses. Amlin will issue an update in November with its normal quarterly trading statement.
Losses of this scale will have an impact on the behaviour of insurance and reinsurance companies during the remainder of 2004 and 2005. Amlin expects that these losses will reduce pressure for rate reductions, and generate rate rises in some areas, particularly for US catastrophe treaty business.
Enquiries:
Amlin plc
Charles Philipps 0207 746 1000
Richard Hextall 0207 746 1000
Hannah Bale 0207 746 1118
Haggie Financial Limited
Peter Rigby 07803 851 426
