Allied World Assurance, a provider of property, casualty and specialty insurance and reinsurance solutions, has said that it expects to record approximately $65m to $75m in catastrophe related losses and loss expenses in second quarter of the 2011.
The insurer said the majority of losses approximately $40m to $50m -were caused by weather-related events in the US and approximately $25m for additional expected losses from first quarter catastrophe events in New Zealand and Japan. These amounts are pre-tax and net of reinsurance recoverables.
Allied World also explained that the loss estimates for these events are derived from preliminary information obtained from clients and brokers, a review of the terms of in-force policies and contracts, a review of outward reinsurance agreements and from the catastrophe modeling analysis.
The insurer added that final losses from these events may vary materially from the current estimates due to inherent uncertainties resulting from several factors, including the preliminary nature of loss data available, potential inaccuracies and inadequacies in the data that has been provided and the potential for catastrophe modeling inaccuracies.