Everest Re Group Provides an Estimate of Total Catastrophe Loss Costs of $245M for the Fourth Quarter 2011
Everest Re Group, Ltd. (NYSE: RE) announced today that it expects to incur net catastrophe losses of approximately $245 million, after reinstatement premiums and taxes, for the quarter. This loss provision includes an estimate for the floods in Thailand, with losses now expected to be $145 million, after reinstatement premiums and taxes. This is above the high end of the range previously announced and implies a market loss in excess of $15 billion.
The quarter's catastrophe loss estimate also includes provisions for reported upward movements on prior events that occurred in the year. This includes the Japan earthquake, as previously announced, and newly reported updates to the New Zealand earthquake estimate from one large cedant. Due to the significant number of complex events this year and the impact this had on the estimation process, the quarter's loss estimate also includes an additional $50 million ($32.5 million after-tax) of catastrophe reserves, above the current point estimates, for all 2011 events.
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