Alleghany Corp. Sees $288M Catastrophe Loss from Sandy
Alleghany Corporation (NYSE: Y) ("Alleghany") today announced a preliminary estimate of its consolidated after-tax loss related to Sandy, net of reinsurance and reinstatement premiums, of approximately $288 million. This estimate reflects a consolidated pre-tax loss estimate, net of reinsurance and reinstatement premiums, of approximately $443 million, comprising $265 million from Transatlantic Holdings, Inc., $165 million from RSUI Group, Inc., and $13 million from Alleghany's Homesite Group Incorporated investment.
Alleghany's preliminary loss estimate is based upon an analysis of reported claims, an underwriting review of in-force contracts, estimates of losses resulting from wind and other perils, including storm surge and flooding to the extent covered by applicable policies, and other factors requiring considerable judgment.
The ultimate amount of Alleghany's actual losses associated with Sandy may be materially different from this preliminary estimate due to the size and complexity of the event and the preliminary nature of the information available to prepare the estimate.
Losses related to Sandy will be reflected in Alleghany's fourth quarter 2012 results, and any subsequent changes will be recorded in the period in which they occur.
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