July 11, 2001 by Canadian Underwriter
Both Chubb and Allstate recently announced estimated catastrophe losses for the second quarter of 2001, predicting a heavy hit from Tropical Storm Allison.
The Chubb Corporation (NYSE: CB) reports an estimated US$80 million in pre-tax cat losses, equaling US$0.29 per share after tax, most of which the company attributes to Allison. This compares with second quarter 2000, when cat losses were just US$24.3 million.
The company also expects to report second quarter operating earnings of US$0.75 to US$0.80 per share, as compared with US$1.00 per share for the same period last year. These results will be officially announced near the end of July.
The Allstate Corporation (NYSE: ALL) was similarly affected by flood damage as a result of Allison, as well as other severe spring storms south of the border. The company expects pre-tax cat losses in the range of US$536 million for the quarter, or about US$0.48 per share after tax, with about US$446 million a result of the spring storms.
However, when compared with 2000, the results show an improvement year-over-year. For the first half of 2001, cat losses are expected to total US$618 million, or US$0.55 per share, compared with US$749 million for the first half of 2000, or US$0.64 per share