Weiss Ratings: U.S. Insurers’ 9/11 Losses Reach $9.3 Billion

Weiss Ratings Inc. of Palm Beach Gardens, Fla., reported that U.S. property and casualty insurers’ net claims arising from the Sept. 11 terrorist attacks reached $9.3 billion by December 31, 2002, compared to $8.5 billion reported through December 31, 2001.

The company noted that net claims equal gross claims plus reinsurance assumed less reinsurance ceded. The Sept.11 losses of $9.3 billion include claims from the following lines of business: workers compensation, auto physical damage, commercial multi-peril, other liability, and aircraft.

Weiss said after reviewing more than 2,150 financial statements filed with the National Association of Insurance Commissioners (NAIC), it found that the insurers recording the largest dollar amount of net claims from the September 11 terrorist attacks were:

• General Reinsurance Corp.–$1.4 billion
• Allianz Insurance Company–$625 million
• St Paul Fire & Marine Insurance Co.–$555 million
• National Indemnity Company–$500 million
• American Re-Insurance Co.–$452 million
• Federal Insurance Company–$426 million
• Swiss Reinsurance America Corp.–$346 million
• Factory Mutual Ins Co.–$270 million
• Hartford Fire Insurance Co.–$269 million
• Hartford Accident & Indemnity Co.–$212 million

General Reinsurance Corp. and National Indemnity Co. both owned by Berkshire-Hathaway, had a combined loss from Sept. 11 of nearly $2 billion—comprising 20.6 percent of the total losses.

Measured in terms of their impact on capital and surplus, companies posting the largest net claims from the attacks were:

• Sea Insurance Co. of America–$36.3 million, 40.5 percent of capital and surplus.
• Connecticut Indemnity Co.–$7.3 million, 36.4 percent.
• American & Foreign Insurance Co.–$18.2 million, 35.5 percent.
• Empire Insurance Company–$1.9 million, 35.2 percent.
• General Reinsurance Corp.–$1.4 billion, 34.6 percent.

“Although final claims may not be known for years, domestic insurers were effective at spreading the risk for such a catastrophic event,” commented Melissa Gannon, vice president of Weiss Ratings.