Minnesota Insurance

Hurricane Katrina rival in May 1994, the earthquake in Northridge, as the third most expensive disaster in the USA, according to initial estimates of insured damage.

The storm cost estimates for insurers that Allstate Corp. is probably $ 9 billion to $ 16 billion, said Eqecat Inc., a storm Modeler. Eqecat cut its estimate as high as $ 30 billion is transferred from Katrina in New Orleans, sweetness of the city is a success.

“ People are breathing a sigh of relief that the storm lost strength and that New Orleans on the weakness of its side of the storm,’’said Ray Stone, Vice President of Operations disaster St. Paul Travelers Cos., the second American Commercial insurer.

Insurers have paid a record $ 22.9 billion last year, four hurricanes in Florida. Storm-payments almost erased the results of the third quarter of last year at Allstate, the largest publicly car at home and insurers.

Katrina’s added together, we can not in conformity with the 1994 earthquake in Northridge, Fitch Ratings, said the cost is $ 16 billion. The September 11 attacks cost $ 20.1 billion, Fitch said. Hurricane Andrew in 1992, was the most expensive disaster in the USA of the insured loss of $ 20.5 billion.

Today, the storm was to land, south of Buras, Louisiana, with winds of 140 kph (225 kph) after weakening night, the National Hurricane Center said. Risk Management Solutions Inc., another Modeler, predicted claims of $ 10 billion to 25 billion dollars. AIR World Wide Corp. estimated at $ 12 billion to 26 billion dollars.

Storm weakens

Katrina was downgraded to a Category 1 storm after the next country to category 4 and was about 20 miles west-southwest of Hattiesburg, Mississippi, at 2 am local time, National Hurricane Center said. Last night, it was a Category 5, the most serious on the Saffir-Simpson scale. Only three category 5 storms have already taken the country.

“ The hurricane something east of the city of New Orleans and the west side of the storm showed evidence of weakening as it lands,’’said Kyle Beatty, a meteorologist at Newark, California , Allows risk management oriented. “ Both served as a positive for New Orleans.”

Fitch Ratings said Katrina is probably the most expensive single event for the insurance industry since the September 11 terrorist attacks the federal government has inspired as much as $ 100 billion to help insurers in the future, ‘attacks, after informing the Insurance Institute.

Saint-Paul, Allstate

Part of St. Paul, Minnesota-St. Paul Travelers fell 47 cents to $ 44.27 New York Stock Exchange Composite trading. Allstate share fell to 77 cents $ 57.18. Hartford Financial Services Group Inc., one of the insurers, which is based in Hartford, Connecticut, slipped $ 1.08 to $ 73.63.

Among the USA publicly Allstate Insurance has the largest market share in the affected areas to 15.7 percent after Banc of America Securities analyst Brian Meredith. St. Paul Travelers, the second at 6.9 percent, said Meredith.

Bill Mellander, a spokesman for Northbrook, Illinois-based Allstate also said it is too early to estimate the insured loss “Katrina”. The insurer has in place the adjustment of claims throughout the USA south-east to assess the damage in affected areas once the storm closely, “he said.

Hartford Financial said in a statement yesterday that the claim of a disaster team ready to enter the affected areas to begin processing applications.

State Farm

State Farm Mutual Automobile Insurance Co., in the future, do not entitled to “ assessments long after the storm results,’’said Dick Luedke, a spokesman for Bloomington, Illinois, established enterprises. State Farm, owned by their policyholders, is the largest in the USA and the Home-car insurer.

“ It takes at least a few days with them to obtain devices and experts there for an evaluation,’’said J. Paul Newsome, an analyst at AG Edwards & Sons Inc. in St. Louis. “ The estimates over time, goes further.”

Henner ALMS, a spokesman for Swiss Reinsurance Co., No. 2 global reinsurance, also said it was too early to assess damage. Allianz AG, spokesman Ashraf El Sharkawy, AXA SA Rebecca Le Rouzic spokesman for Hanover and spokesman Rick Gabriele also said it was too early to comment.

Falling prices

Zerstörungsfreie storms often lead to an increase in the sale of insurance between owners and businesses. Fox-Pitt Kelton Inc. analyst Bill Yankus said Katrina will not be enough stimulus to demand lower prices of property and accident insurance. Prices began falling last year, after three years increases inflated profits and attracted new competitors on the market.