Hi All -- Here's another article that might be of some interest. It states that AM Best's is predicting that none of the well-rated insurance companies will be adversely affected by Katrina losses, although others mau not be able to meet their obligations. I've seen reports on the predicted losses by several major insurers, so they are planning to pay somebody! However, a lot of these reported losses will be paid under commercial policies, rather than homeowners' policies. This article states Lloyd's is predicting losses at $2.5 billion. The reinsurers are another concern being discussed in this article and elsewhere -- reinsurers, in effect, insure the insurers for certain losses they have to pay out.
Regards, Ricki Utah OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 16, 2005--Hurricane Katrina, the most expensive storm on record, has brought back into the spotlight the controversial issue of requiring non-U.S. reinsurers to maintain trust funds in the United States as collateral for the payment of anticipated claims. The debate typically would ratchet up after high-impact catastrophes when reinsurers were required to almost immediately post 100% of their liabilities into the trust funds, according to an exclusive report in the Sept. 19 BestWeek. Lloyd's, among the most vocal opponents of the trust fund regulation, reiterated its opposition to the U.S. policy last week, although it insisted the company would have no problem meeting all of its Katrina liabilities. So far, Lloyd's estimates Katrina will create a net loss of $2.55 billion on its businesses. The effect on its central fund--available to cash-strapped syndicates that have exhausted their own coffers--would be "immaterial," it said. Also, "nothing suggests that Lloyd's syndicates would not be able to trade forwards as a result of the Hurricane Katrina," the company said in a statement. Other exclusive BestWeek content is a comprehensive rating action taken by A.M. Best Co. regarding major companies with exposure to Hurricane Katrina. A.M. Best said it expects all rated companies to be able to meet their current loss obligations despite the projected magnitude of the insured losses. However, the insured losses from Katrina have had a significant impact on some insurers, leaving potential capital shortfalls relative to their current rating level and also calling into question the risk management capabilities of some insurers, A.M. Best said. To unsubscribe send email to [EMAIL PROTECTED] containing the line: unsubscribe lace-chat [EMAIL PROTECTED] For help, write to [EMAIL PROTECTED]
