Hurricane Sandy is estimated to cost The Travelers Cos. $650 million after the company accounts for tax and reinsurance.
Reinsurance is insurance for insurers, covering insured costs if the dollar amount reaches a certain level.
Before tax and reinsurance, Travelers estimates losses of $1.1 billion. Travelers did not provide estimates by state.
The company said that due to the nature of the storm, the scope of it, the number of customers who had insured damage to car homes and businesses, and other factors, the actual losses may be different from the current estimate.
Estimates of overall losses to insurance companies and the economy in general have varied since the storm hit on Oct. 29. Most recently, Sandy is estimated to have caused a total of $16 billion to $22 billion in damage covered by insurance companies, according to a Nov. 26 estimate by AIR Worldwide, a catastrophe modeling company.
The Allstate Corp. said on Nov. 28 that it estimated catastrophe losses to be $1.08 billion, before tax and net of reinsurance. Allstate automobile claims accounted for 40 percent the total. Two-thirds of Allstate’s losses are in New York state and 20 percent are in New Jersey. The remaining 14 percent is in “other states,” the company said.
The Hartford Financial Services Group has not released estimated losses, other than to say they are “manageable.” The company must cover up to $350 million before reinsurance kicks in, and losses could amount to $350 million, The Hartford said. If the company has to pay more than $350 million in claims, 90 percent will be covered by reinsurers.
Liberty Mutual and Chubb Corp. have not released estimates of loss. Liberty Mutual is the top insurer of homes in Connecticut, based on premium revenue, followed by Travelers and Chubb. Travelers is the leading insurer of businesses in Connecticut, followed by Liberty Mutual and American International Group.