The St. Paul Cos. Expects Net Pretax Losses of $700M from Attacks

The St. Paul Companies announced that the terrorist attacks of Sept. 11 will likely result in estimated net pretax losses of approximately $700 million to the company from its U.S. primary insurance, reinsurance and Lloyd’s of London operations.

The company’s estimate is based on a total insured loss of between $30 billion and $35 billion for the industry. However, it will take more time before the total industry loss is clear. The St. Paul’s net loss comprises all losses from all lines of insurance, and takes into account the company’s various reinsurance arrangements, its catastrophe reinsurance program, the corporate reinsurance program, and a provision for potentially unrecoverable reinsurance.