Insurers provide Sandy loss estimates

Insurers Amlin and Lancashire Holdings have estimated possible losses of £145 million, and between £40 million and £60 million respectively from Hurricane Sandy.

Lancashire Holdings warned that its estimate accounted for potential reinsurance recoveries and reinstatement premiums, but did not presently include any benefit from industry loss warranties it had in place.

Amlin stressed that it still expected to "return healthy profits" after estimated losses from Sandy were taken into account.

The announcements came just a day after insurance market Lloyd's of London said it expected to face claims of between $2 billion and $2.5 billion (£1.2 billion and £1.5 billion) for the damage caused by Sandy.

Sandy, expected to be the second-costliest storm for the insurance sector after Hurricane Katrina in 2005, caused chaos as it destroyed properties, flooded the New York subway system and disrupted power supplies.

Other Lloyd's insurers that have release estimates include Catlin, with a net, pre-tax loss of $200 million; blue-chip Hiscox, with an estimated net loss of £90 million; and smaller peer Novae Group, which anticipated between $25 million and $30 million of net losses from the event.