Catlin estimates Rita losses at $60 million

Catlin Group Limited (‘CGL’: LSE), a Bermuda-based property and casualty insurer and reinsurer, estimates losses arising from Hurricane Rita will be US$90 million gross of reinsurance and US$60 million on a net basis. Catlin is not revising its Sept. 12 estimate that losses arising from Hurricane Katrina will be US$275 million gross of reinsurance and US$125 million on a net basis. This estimate, the company said in a press release, “is consistent with an industry-wide loss of approximately US$40 billion.” Based on these estimates, Catlin’s combined losses from Hurricanes Katrina and Rita will be US$365 million gross of reinsurance and US$185 million on a net basis.”Hurricane Katrina represents the largest insured loss in history, and Hurricane Rita is a major catastrophe in its own right,” Stephen Catlin, Catlin Group Limited’s CEO, said in the release. “In light of these losses, we are already seeing significant rate increases for numerous classes of insurance and reinsurance, particularly those affected by the hurricanes.”Despite the losses from the hurricanes, Catlin is in an excellent position to take advantage of the significant underwriting opportunities that will arise over the coming months.”