Lightbox Example

Close

To access this document you will need to log-in with your Username and Password.

Superstorm Sandy update

Happy New Year! We are pleased to report that our office has been functioning as usual since power was restored on November 2, and while a number of our employees experienced storm damage to their homes, we are grateful no one was seriously injured and there was only minor damage to our office building.

Superstorm Sandy had a widespread effect on AEGIS members and we are in the process of working with those who were in the path of the storm. As you would imagine, a number of members sustained significant property losses to T&D systems, plants and other equipment. While it is still too early to calculate the full extent of insured losses related to Sandy with any degree of certainty, we have had substantial dialogues with our affected members and have formed some preliminary estimates of our New Jersey and London Syndicate's property exposures. Our reinsurance programs offer significant per risk and catastrophe protections that help limit our net losses and, at this time, we expect that our reinsurance programs will contain our total net property losses to approximately $40 to $50 million on a pre-tax basis.

Although we have received a number of notices of liability claims from our insureds, here and in London, it is too early to make an estimate of our liability for this line of business. Again, we have casualty reinsurance designed to ameliorate the potential impact of these losses.

We will, of course, update you in due course, as better information allows better estimates. In addition, we are in the midst of our year-end actuarial review of all of our current and prior year loss experience which will allow us to assess the financial impact of Sandy in that overall context.