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.

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.

Recommended

Three stocks to provide income and growth in good times and bad
Share tips

Three stocks to provide income and growth in good times and bad

Professional investor Matthew Page of the Guinness Global Innovators fund picks three resilient stocks that should pay predictable dividends that grow…
5 Aug 2022
Share tips of the week – 5 August
Share tips

Share tips of the week – 5 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
5 Aug 2022
Invest in defence stocks as war goes hi-tech
Share tips

Invest in defence stocks as war goes hi-tech

The operational efficiency of defence equipment and cybersecurity is developing rapidly owing to the war in Ukraine, says Jonathan Compton. Here’s wha…
4 Aug 2022
Enjoy the bear market rally while it lasts
Stockmarkets

Enjoy the bear market rally while it lasts

Investors seem to think that a weaker US economy will cool inflation and see the Fed relent on interest rate rises. But that optimism may be misplaced…
3 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
What is stagflation and what can be done about it?
UK Economy

What is stagflation and what can be done about it?

The threat of 1970s-style stagflation has returned, here’s what you need to know.
4 Aug 2022
Share tips of the week – 5 August
Share tips

Share tips of the week – 5 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
5 Aug 2022