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Lancashire counts cost of Hurricane Sandy

Insurance outfit Lancashire Holdings has estimated the impact Hurricane Sandy on the business will be in the region of 40m to 60m dollars.

Insurance outfit Lancashire Holdings has estimated the impact Hurricane Sandy on the business will be in the region of 40m to 60m dollars.

However, it added there was considerable uncertainty around this total and it could be revised.

The firm said the preliminary loss estimate came from a combination of market data and assumptions, provisional loss advices, limited client loss data and modelled loss projections.

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The figure accounts for potential reinsurance recoveries and reinstatement premiums, but does not currently include any benefit from industry loss warranties that the company has in place.

Lancashire has $40m of industry loss warranty cover, attaching at an insured market loss of $20m as reported by Property Claims Services.

"Given the limited and preliminary nature of the data available, there is substantial uncertainty associated with the loss estimate, which therefore may be subject to revision," the firm warned.

The announcement came as rival insurance firm Amlin put its losses from the US superstorm at £145m, most of which comes from reinsurance claims.

The group also noted that Sandy's estimate was more complex than for a typical windstorm and cautioned that any estimate at this stage should be viewed with caution.

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