ACE to Lose $100 Million on Charley Friday August 20, 11:31 am ET Insurance Company ACE to Lose About $100 Million Before Taxes on Hurricane Charley
NEW YORK (AP) -- Hamilton, Bermuda-based insurance company ACE Ltd. said Friday said the company will lose approximately $100 million before taxes because of Hurricane Charley. The company said the amount is in line with guidance for annual catastrophe-related losses.
Analysts estimate ACE will post fiscal 2004 earnings of $5.34 on revenue of $11.43 billion, according to Thomson First Call.
Charley killed 22 people in Florida and more than 335,000 customers were still without power as of Thursday, according to state officials.
Not too bad at all something they are prepared for and no material affect on results.
As yet another major storm looms off the Continental US, I ponder the fact that despite the relatively narrow band of destruction across Florida from Charley, ACE had a fairly high after tax net loss for the level of surplus they maintain. So I have to wonder about the effectiveness of their reinsurance program and cat loss estimation / underwriting process. I am curious to know if anyone is aware what specific insured's suffered losses which contributed to the $100 million net figure??? Were they writing a large number of Middle market or small business risks, were the losses related to their insurance of boats and yachts, or was it all business interruption for Oil drilling platforms in the Gulf??????