Ike losses hit £45m for Advent
Lloyd’s of London insurer Advent Capital announced an increase in its estimated losses for Hurricane Ike from £15 million before tax to £42 million before tax.
The figures – which are net of reinsurance recoveries and reinstatement premiums – mean the company will incur a full-year loss for 2008, because the increased claims have exhausted its reinsurance protection.
Advent blamed the increased expenses on recently discovered underwater damage to oil rigs and other energy equipment in the Gulf of Mexico.
The company said it is ‘extremely disappointed’ by the performance of its Energy account.
In future, this ‘unacceptable performance’ will be prevented because Advent will no longer write insurance for any Gulf of Mexico offshore energy business that is exposed to windstorms.
The company took this ‘decisive action’ – rather than simply increasing rates – because it is no longer willing to expose itself to such high level risks.
Category: Financials, Insurance News
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