American National Reports After-Tax Katrina Loss of Nearly $80M

Texas-based American National Insurance Company reported that its subsidiary property and casualty companies, including American National Property and Casualty (ANPAC) and ANPAC Louisiana Insurance Company and their subsidiaries, have increased their estimated after-tax loss estimate from Hurricane Katrina to $79.4 million. The estimated pre-tax loss before reinsurance is $301 million.

The updated loss estimate for Hurricane Katrina is based upon information received on claims through Dec. 12, 2005 that have been settled, information received from Catastrophe Team Adjusters and estimated future claims.

The Hurricane Rita loss estimate has not changed. The revised after- tax loss estimate from Hurricanes Katrina and Rita totals approximately $86.1 million. As of Dec. 12, 2005, 16,454 claims had been reported for Hurricane Katrina and 2,612 for Hurricane Rita.

There are unusual circumstances and uncertainties involving the nature of Hurricane Katrina, including difficulty accessing parts of the affected areas, complexities of losses, and legal challenges. The recorded losses represent the company’s best estimates at the current time; however, due to the uncertainties involved, the ultimate cost of losses may vary from these estimates.