Insurers $920 Million in Catastrophe Losses is Lowest for a Second Quarter in 10 Years, Estimates ISO's Property Claim Services Unit

JERSEY CITY, N.J., July 6, 2005 — U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $920 million for second-quarter insured property losses from four catastrophes in 25 states — the lowest tally among second quarters in the past 10 years, according to preliminary estimates by ISO's Property Claim Services (PCS) unit.

This compares with insured losses of $2.3 billion in second-quarter 2004 and $5.1 billion in second-quarter 2003. The property/casualty industry's worst second quarter for catastrophe losses was $6.2 billion in 2001.

For the first half of this year, insured property losses from catastrophes stand at $3.05 billion from 12 events in 37 states.

PCS estimates the second quarter's four catastrophes generated nearly 311,400 claims, nearly half of which are from homeowners.

Severe weather, including high winds, hail, tornadoes and flooding, was responsible for all the insured damage in the quarter.

The costliest event this quarter was a severe thunderstorm in early May that affected 14 states, causing $305 million in insured property damage.

At $315 million, Texas topped the list of the five most severely affected states, followed by Nebraska at $105 million, Kansas at $85 million, Oklahoma at $65 million and Colorado at $45 million.

Following is a summary of second-quarter losses and frequency of events since 1996:

Year
Loss ($)
Frequency
     
1996
$1.7 billion
12
1997
$980 million
  9
1998
$4.5 billion
16
1999
$3.5 billion
13
2000
$1.5 billion
10
2001
$6.2 billion
  9
2002
$2.8 billion
10
2003
$5.1 billion
  4
2004
$2.3 billion
  6
2005
$920 million
  4

ISO's PCS unit defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of property/casualty policyholders and insurers.

PCS estimates represent anticipated insured loss on an industrywide basis arising from catastrophes, reflecting the total insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, business interruption and additional living expenses. The estimates exclude loss adjustment expenses.

About ISO
ISO is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. In the U.S. and around the world, ISO's services help customers protect people, property and financial assets.

Release: Immediate

Contacts:
Giuseppe Barone / Erica Helton
MWW Group (for ISO)
201-507-9500
gbarone@mww.com / ehelton@mww.com