U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $3.35 billion for first-quarter property losses resulting from nine catastrophes, although complete figures were only available for eight of the losses.  The Insurance Services Office’s (ISO) ISO’s Property Claim Services unit (PCS) estimates that the remaining eight catastrophes of first-quarter 2008 generated 615,000 claims in 22 states. Seven of these were caused by severe weather — damaging wind, large hail, flooding and tornadoes — and one was caused by a winter storm.

“The remaining eight events still represent the greatest frequency in the first quarter since 1999 — tied with the eight events declared in 2005,” said Gary Kerney, assistant vice president, PCS. “The insured property loss, however, remains the largest in the last decade.” Of the 22 states, the five with the largest insured property losses were Georgia ($610 million), Tennessee ($535 million), California ($360 million), Texas ($270 million) and Arkansas ($223 million).

First Quarter P/C Cat Losses Pegged at $3.35 Billion (ISO 4/29/08)

May 6, 2008