Catastrophe Claims For May/June's Windstorms, Hail And Tornadoes Totals $650 Million

N/Adays of severe windstorms, hail and tornadoes across 12 states in late May and early June cost U.S. property/casualty companies an estimated $650 million in insured losses, <%=company%> (ISO) has reported.

The severe weather generated losses through a total of nearly 250,000 claims between May 30 and June 1, according to ISO's Property Claim Services unit. Personal property catastrophe-losses totaled $424 million; commercial property, $170 million; and auto $56 million.

Hardest hit was Minnesota, reporting an estimated $200 million in insured losses for the period. Michigan posted the second-largest catastrophe loss for the period with an estimated $115 million in claims.

For insurance, a catastrophe is a single incident, or series of related incidents, causing insured property losses totaling more than $25 million.

The losses by state:

Iowa $ 20 million
Massachusetts $ 35 million
Michigan $ 115 million
Minnesota $ 200 million
New Hampshire $ 10 million
New Jersey $ 20 million
New York $ 60 million
Ohio $ 30 million
Pennsylvania $ 65 million
South Dakota $ 25 million
Vermont $ 10 million
Wisconsin $ 60 million

At $575 million, total catastrophe losses in Minnesota have been especially severe to date. Forty-two percent of all the insured catastrophe damage sustained in Minnesota over the past 20 years has occurred in three 1998 catastrophes: wind, hail and tornadoes of March 27-30, $175 million; May 15-16, $200 million; and May 30-June 1, $200 million. Since 1978, total insured catastrophe losses in Minnesota have totaled $1.4 billion.

The ISO's PCS estimate represents anticipated insured loss on an industry-wide basis arising from a catastrophe event, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items and business-interruption. The estimate excludes loss adjustment expense.
<%=company%>