USF&G Doubles Estimate of Hurricane Andrew Losses
BALTIMORE (AP) _ USF&G Corp. announced Thursday it lost $80 million because of Hurricane Andrew, nearly double the amount the insurer earlier estimated.
Damage from the hurricane was so extensive that an earlier estimate of $45 million released in September was revised, said Kerrie Burch-DeLuca, a spokeswoman.
Many claims were delayed because families had to leave their homes during the storm and then filed later after assessing the damage, she said.
Apartment relocations and construction costs also added to losses for the Baltimore-based insurer. Building materials and costs are about 70 percent to 80 percent higher in the region since the hurricane, Ms. Burch-DeLuca said.
About 7,000 claims in Florida and Louisiana have been filed with USF&G, she said. The company is the 17th largest property-casualty insurer in the country.
But Ms. Burch-DeLuca said the loss was offset by capital gains increases, which means the company’s surplus will not be affected. Exact capital gains figures won’t be released by the company until later this month.