$13 TO $15 B HURRICANE DAMAGE LOSSES ESTIMATED:

The triple-whammy hits of hurricanes Ivan, Frances and Charley combined probably produced about $13 billion to $15 billion in losses, according to catastrophe modeler Risk Management Solutions of Newark, Calif. The losses rival those of the costliest hurricane ever, 1992s Hurricane Andrew — at least before it’s adjusted for inflation, said Robert Hartwig, chief economist of the Insurance Information Institute. “The industry is financially capable of handling Ivan’s losses,” said Hartwig. “The long and the short of it: three losses, bad quarter, but not a solvency-threatening event.” A majority of property/casualty insurers have prepared for the storms by, among others, securing enough private reinsurance to cover their losses. Estimated insured losses from Ivan in the United States are expected to range from $2 billion to $7 billion. Additional insured losses of $1 billion are expected for damages in the Caribbean, with the majority occurring in the Cayman Islands. Ivan came ashore east of Mobile at Gulf Shores, Ala., so it did not hit major metropolitan areas in the southeast. U.S. property/casualty insurers expect to pay between $6.8 billion and $7.4 billion for insured property losses from Hurricane Charley, the second-costliest hurricane since Andrew, which caused insured losses of about $15.5 billion. Less than three weeks later, over the Labor Day weekend, a less severe, but much more widespread Hurricane Frances, slammed into the Sunshine State, making landfall on its eastern coast. Catastrophe modelers have placed Frances’ estimated insured losses between $2 billion and $10 billion. Losses from Hurricane Frances, according to industry experts, are likely to be between $4 billion and $5 billion.