XL Group plc has announced that its preliminary net loss estimate related to Storm Sandy is around $350 million, pretax and net of reinsurance and reinstatement premiums. XL added that “approximately 60 percent of the Company’s estimated loss relates to the Reinsurance segment.”
Within that segment XL said “the loss estimate is comprised of approximately 20 percent for Marine and 80 percent for Property Reinsurance, including catastrophe treaty, per risk treaty and facultative exposures.
“Within the Insurance segment, the loss estimate is comprised of approximately 15 percent for Specialty lines, including Marine, Fine Art and Specie, and 85 percent for Property.
“This loss estimate is in line with the Company’s expectations given the potential size of this event to the insurance industry as commented on by the Company during its third quarter earnings call on November 5, 2012.”
XL also explained that its loss estimate is “based on its review of individual treaties and policies expected to be impacted, along with available client data. This preliminary estimate involves the exercise of considerable judgment. Given that the facts are still developing, as well as the complexities of the nature of the event, there is considerable uncertainty associated with the loss estimate of the event and such estimate is accordingly subject to revision as additional information becomes available. Actual losses may differ materially from this preliminary estimate.”
Source: XL Group plc