PXRE Preliminary Loss Estimates on Wilma $75 to $90 Million

The Bermuda-based PXRE Group Ltd. announced that its preliminary estimate of the net impact from Hurricane Wilma is between $75 million and $90 million, net of reinsurance, reinstatement premiums and tax.

PXRE said the estimate “assumes that the insured industry losses caused by Hurricane Wilma in Mexico and the United States will be approximately $14.5 billion.”

It also cautioned that “it had only received a limited number of claims since the event and that this preliminary estimate is primarily based on extensive modeling, a detailed review of affected contracts and discussions with its clients. It is difficult to accurately estimate losses in the immediate aftermath of any major catastrophe and the ultimate impact of losses from Hurricane Wilma on the Company’s results of operations might therefore differ substantially from the Company’s current estimate.”

In a separate announcment PXRE said it has concluded a reinsurance securitization agreement (See previous article).