This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

What If the Real 'Big One' Hits the Northeast?

Here's a quick look at underwriting results for the first three quarters for five publicly traded insurers with significant P&C market share in the Northeast, along with damage estimates from Hurricane Sandy, if available, and third-quarter capital levels:
  • Allstate(ALL - Get Report) on Nov. 28 estimated that its losses for October, net of reinsurance, totaled $1.1 billion before taxes. The company said that "autos represent approximately 40% of the total gross losses, with 78% in New York, 19% in New Jersey and 3% in other states." For its Property-Liability unit, Allstate reported underwriting income of $1.316 billion for the first three quarters of 2012, improving from an underwriting loss of $1.483 billion, a year earlier. The company had $20.8 billion in total equity as of Sept. 30, increasing from.
  • The Travelers Companies (TRV - Get Report) on Dec. 5 announced that its preliminary estimate of losses related to Sandy was $1.135 billion, net of reinsurance. The after-tax loss estimate was $650 million. For the first three quarters, Travelers reported an underwriting profit of $845 million, improving from an underwriting loss of $1.453 during the first three quarters of 2011. Travelers reported that as of Sept. 30, the company had total equity of $29.5 billion, increasing from $24.5 billion in Sept. 2011.
  • Berkshire Hathaway (BRK.B) has not yet announced an estimate of its losses from Hurricane Sandy. The company reported an underwriting profit of $1.065 billion for the first three quarters, increasing from $261 million a year earlier. The company had $189.1 billion in total equity as of Sept. 30, increasing from $170.1 billion a year earlier.
  • American International Group (AIG - Get Report) on Dec. 7 announced a preliminary estimate of $2.0 billion in losses from Hurricane Sandy, net of reinsurance, or $1.3 billion after taxes. The company also said it expected to contribute $1 billion in capital to its AIG Property Casualty unit, after the unit had paid $2.4 billion in dividends to the holding company through the first three quarters of 2012. For the first three quarters of 2012, the company followed the industry trend for improved underwriting, but still showed an underwriting loss of $838 million for its Property Casualty Unit, narrowing from a loss of $2.494 billion a year earlier. AIG reported that as of Sept. 30, the P&C unit had $49.6 billion in capital and that the parent company had total equity of $102.4 billion.
  • Chubb Corp.(CB - Get Report) on Dec. 11 announced estimated losses of $880 million before tax, or $570 million after tax, from Hurricane Sandy, net of reinsurance. The company had previously suspended its repurchases of common shares, but said it would resume buybacks following the loss announcement, although at a slower pace than originally planned. For the first three quarters of 2012, Chubb reported underwriting income of $880 million, increasing from $290 million during the first three quarters of 2011. The company had $16.0 billion in equity as of Sept. 30, increasing from $15.3 billion a year earlier.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ALL $65.49 0.00%
AIG $62.35 0.00%
CB $119.99 0.00%
TRV $99.30 0.00%
AAPL $126.60 0.00%

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs