New information from clients reflects larger losses than initial estimates.
IPC has increased its estimate of claims from hurricanes Gustav and Ike by approximately $47 million to a total estimate of approximately $135 million, net of reinstatement premiums.
IPC's third quarter 2008 results included a total estimate of claims from the above events of $88 million, net of reinstatement premiums. That means the loses have been revised up by 53%.
IPC says that the revised estimate is the result of new information from clients reflecting larger losses than initial estimates or new notifications. It explains that the increases primarily arose from inwards retrocessional business (including reinsurance of direct and facultative business) and, to a lesser degree, onshore energy contracts.
IPC will announce earnings for the fourth quarter and the full year 2008 after the close of trading on 17 February.
IPC Holdings, Ltd., through its wholly-owned subsidiary IPCRe Limited, provides property catastrophe reinsurance and, to a limited extent, aviation, property-per-risk excess and other short-tail reinsurance.