) expects loss from Superstorm Sandy to approximate $380 million
after tax, net of reinsurance and including reinstatement
premiums in the fourth quarter of 2012.
The estimate includes losses stemming from the commercial and
personal property and casualty insurance businesses as well as
its reinsurance operations.
Concurrently, it revised its full year 2012 earnings expectation
to $7.43 - $7.53 per share. The guidance is lowered from the
prior expectation of $7.73-$8.03 per share to accommodate the
higher-than-expected catastrophe loss. The Zacks Consensus
Estimate for 2012 is currently pegged at $7.65, above the company
guidance. Also, it represents a year-over-year improvement of
During the third quarter conference call, ACE Limited raised its
full year 2012 operating earnings expectation to a band of
$7.73-$8.03 per share, up from $7.20-$7.60 per share guided
earlier. The guidance includes catastrophe loss of $100 million
in the fourth quarter.
The company posted strong results in each of the three quarters
in 2012 aided by lower catastrophe activities. However, the final
quarter might show a different picture due to the impact of
Hurricane Sandy. Loss modeling companies project the amount to be
approximately $20-$22 billion.
The first two quarters enjoyed year-over-year increases in
underwriting profit along with improvement in combined ratio.
However, the third quarter experienced a decline in underwriting
profit and deterioration in combined ratio.
Another property and casualty insurer,
Montpelier Re Holdings Ltd.
), announced its expectations of pretax net loss from Superstorm
Sandy in the fourth quarter of approximately $95 million, net of
reinsurance recoveries and reinstatement premiums.
ACE Limited and Montpelier, both carry a Zacks #3 Rank,
translating into a short-term Hold rating.
ACE LIMITED (ACE): Free Stock Analysis Report
MONTPELIER RE (MRH): Free Stock Analysis
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