Hurricane Irene, the first hurricane to slam the U.S. since 2008, will cost Chubb Corporation between $400m and $450m before taxes this quarter, the Warren, New Jersey based company disclosed this week.
Chubb Corporation (CB) which provides insurance to corporate boards and high-end residences will see its share price drop by up to $1.07 because of claims. Chubb said Irene losses will likely amount to between $300 and $375m this quarter.
Hurricane Irene barreled into the U.S. east coast last month, bringing down trees and flooding residences from North Carolina to New York. Other insurers will also bear the burden of Irene’s wrath including AllState Corporation based in Illinois, which suffered big losses during the second quarter because of tornadoes. AllState suffered $2.3 bn in catastrophic losses due to tornadoes and hail storms.
Chubb and AllState combined catastrophic losses for the third quarter have reached $1.3 bn and Travelers and other insurers are still calculating the costs. The Insurance Information Institute reported that insurance companies are in the process of paying out a combined $15bn most of which resulted from tornadoes between April and June.
Chubb said it will provide its complete third quarter results on October 20th after 4:00 p.m.
