Reinsurer reflects on $16bn industry loss – higher than cat modellers’ estimations
Amlin has announced its first estimate of claims incurred from this year’s hurricane season to date and provides an update on its investment performance.
The company expects that the market insured loss for Hurricane Ike will be in excess of $16bn which is higher than modelling agents’ current estimates. This is due to the far reaching impact of the storm both on offshore energy installations and on the mainland.
The company estimates its own claims burden from hurricanes Gustav and Ike are $285m, net of reinsurance and reinstatement premiums. This figure is comprised of $137m for Syndicate 2001 and $148mn for Amlin Bermuda. Amlin estimates that these events will reduce its forecast 2008 profit after tax by approximately £45mn.
Amlin’s investment return for the nine months to the end of September was 0.4% on average investments of £2.6bn. The investment allocation at 30 September 2008 was 59.5% bonds, 30.9% cash and cash equivalents, 6.6% global equities and 3.0% global property. These portfolios are currently unhedged.
Amlin will issue its interim management statement on 19 November 2008.
