Everest Re Group Ltd. led insurers that announced more than $700 million in potential losses today from superstorm Sandy, which lashed the U.S. East Coast and flooded portions of New York and New Jersey.
Everest Re’s losses from the storm may be $220 million after taxes, the Bermuda-based insurer said today in a statement. Aspen Insurance Holdings Ltd., also based in Bermuda, said losses from Sandy may be $175 million by the same measure.
Sandy battered the U.S. Northeast, flooding homes and shuttering businesses, after making landfall in New Jersey in October. It may cost the insurance industry as much as $25 billion, catastrophe modeler Risk Management Solutions Inc. has said. American International Group Inc., the insurer that repaid a U.S. bailout, said Sandy will cost about $1.3 billion after taxes, the highest sum disclosed by a U.S. insurer.
“Hurricane Sandy passed with devastating effects,” analysts at JPMorgan Chase & Co. including Arun Kumar wrote in a Dec. 4 research note. “The devastation was wide and the scale of the insured losses is expected to be high.”
RenaissanceRe Holdings Ltd. said Sandy losses may reduce fourth-quarter earnings by about $130 million. Allied World Assurance Co. Holdings AG said Sandy losses are about $165 million before taxes. At Argo Group International Holdings Ltd., Sandy may cost $45 million to $55 million.