U.S. insurers post record third-quarter catastrophe losses

In the wake of one of the worst Atlantic hurricane seasons in recent memory, U.S. insurers have posted record third-quarter catastrophe losses, topping even 2001, according to data compiled by the Property Claim Services unit of the Insurance Services Office (ISO).
The ISO says U.S. p&c insurers paid out US$21.3 billion in property catastrophe losses on eight events in the third quarter of 2004 the worst third quarter ever. 2001 had been the worst third quarter at US$19.15 billion in insured cat losses, as a result of property and related losses from 9/11, but excluding liability, workers’ compensation, aviation and life & health losses. In the third quarters of 2002 and 2003, insurers suffered US$715 million and US$3.72 billion respectively in property cat losses.
For the first nine months of 2004, cat losses are US$24.7 billion, second to the US$26.1 billion in losses paid out in the first nine months of 2001, and well up from US$10.2 billion in losses for the same period in 2003.
Most of this year’s losses come from the four major Atlantic hurricanes Charley, Frances, Ivan and Jeanne which account for US$20.5 billion in claims. But the total also includes four smaller storms, including Tropical Storm Gaston, which met the ISO’s threshold for catastrophe, defined as a minimum US$25 million in losses from a single event.
Of the states affected, Florida had the lion’s share of claims at US$17.5 billion in losses on 1.7 million claims. Alabama was a distant second at US$1.2 billion in losses, followed by Georgia (US$630 million), Pennsylvania (US$445 million) and North Carolina (US$255 million).