Vesta Insurance Provides Preliminary Loss Estimates for Hurricanes Rita and Katrina

Strategic Insights -

Vesta Insurance Group, Inc., a leading provider of property insurance, announced preliminary loss estimates for hurricanes Rita and Katrina. The company's subsidiary, Texas Select Lloyds Insurance Company, is expected to incur a gross loss of less than $20.0 million from Hurricane Rita, with a net loss of $6.0 to $8.0 million. For Hurricane Katrina, Vesta estimates its net losses will be less than $1.0 million, as it does not write business in Louisiana or Mississippi. The preliminary loss estimates are based on catastrophe models and initial reports from policyholders.

Key Takeaways:

  • Vesta Insurance's preliminary gross loss estimate from Hurricane Rita is expected to fall below $20.0 million, with a net loss of $6.0 to $8.0 million.
  • The company's net loss from Hurricane Katrina is estimated to be less than $1.0 million.
  • Vesta does not write business in Louisiana or Mississippi and expects an immaterial amount of loss from Katrina's second landfall.
  • The preliminary loss estimates are based on catastrophe models and initial reports from policyholders.
  • The company has updated its loss estimates for damages caused by Hurricane Katrina in South Florida.

Statistics:

  • Preliminary gross loss estimate from Hurricane Rita: less than $20.0 million
  • Net loss from Hurricane Rita: $6.0 to $8.0 million
  • Net loss from Hurricane Katrina: less than $1.0 million
  • Number of hurricanes affecting Vesta's business: 2

Sources:

  • Vesta Insurance Group, Inc. press release, October 4, 2005 (EDGAR Online via COMTEX)
  • Vesta Insurance Group, Inc. website (www.vesta.com)
  • Comtex SmarTrend Alert, October 4, 2005 (Comtex News Network, Inc.)