Manulife’s Katrina losses at US$165 million

Canadian-based Manulife Financial Corporation [TSX/NYSE/PSE: MFC; SEHK: 0945] estimates its after-tax losses related to damages left by Hurricane Katrina will be US$165 million.
Manulife provides property catastrophe coverage to a number of reinsurers, the company said in a statement. “Reinsurers generally begin to pay limited benefits when insured losses from a catastrophic event exceed US$20 billion.”
The company’s estimate is based on a review of all reinsurance contracts in force, and assumes the full limit of each contract will be paid. The company says it does not expect any significant level of claims will arise from its life insurance operations.
Funds under management by Manulife Financial and its subsidiaries were Cdn$364 billion (US$297 billion) as at June 30, 2005. Manulife operates primarily through John Hancock in the United States.
“The devastation of this hurricane was unfathomable,” Dominic D’Alessandro, Manulife Financial president and CEO, said in a press release. “Manulife, John Hancock and our employees have made and are continuing to make significant contributions to the relief efforts to alleviate the distress affecting so many people. The financial impact to Manulife of the hurricane is within our risk management tolerance and does not change our financial strength.”