US – Validus expects USD 333 million loss for Sandy

ED NOONAN, CHIEF EXECUTIVE, VALIDUS 

Validus’s Sandy loss estimates are net of reinstatement premiums and reinsurance. Of the USD 333.1 million loss, Validus expects USD 256.2 million to come from its reinsurance segment and the USD 76.9 million balance from its Lloyd’s operation, Talbot. Validus chief executive Ed Noonan said: “Hurricane Sandy was a large, complex loss event impacting our business across all of our operating segments and through multiple classes. 

“As a leader in both the property catastrophe and marine classes, we see this event as being both unique and difficult for our clients to reserve. Our estimate of the net negative financial impact from Hurricane Sandy corresponds to an industry-wide insured market loss in excess of USD 25 billion, which appreciably exceeds industry loss estimates implied by the aggregate losses reported to us to date by our ceding clients.” 

We have undertaken a thoughtful review of our property, marine and specialty exposures in the affected region in arriving at our initial estimate of the net negative financial impact from Hurricane Sandy, but would caution that all estimates should be considered preliminary at this point.