NEW YORK: Flagstone's $39.1m loss from United States storm will not hit Validus results. Insurancetimes.co.uk reported on Wednesday.
Bermuda-based (re)insurer Validus expects claims from Superstorm Sandy to cost it $333.1m.
In addition, Validus announced that the $39.1m Sandy loss expected by Flagstone Re, which it bought on 30 November, would not hit Validus's results. This is because the event took place before the completion of the acquisition.
Sandy hit the east coast of the USA on October 30.
Validus's Sandy loss estimates are net of reinstatement premiums and reinsurance. Of the $333.1m loss, Validus expects $256.2m to come from its reinsurance segment and the $76.9m balance from its Lloyd's operation, Talbot.
The estimate is based on an industry-wide loss of $25bn.
Validus chief executive Ed Noonan said, "Hurricane Sandy was a large, complex loss event impacting our business across all of our operating segments and through multiple classes.
"As a leader in both the property catastrophe and marine classes, we see this event as being both unique and difficult for our clients to reserve.
"Our estimate of the net negative financial impact from Hurricane Sandy corresponds to an industry-wide insured market loss in excess of $25bn, which appreciably exceeds industry loss estimates implied by the aggregate losses reported to us to date by our ceding clients."
Noonan added, "We have undertaken a thoughtful review of our property, marine and specialty exposures in the affected region in arriving at our initial estimate of the net negative financial impact from Hurricane Sandy, but would caution as noted below that all estimates should be considered preliminary at this point."
