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March 13, 2009 |
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ASBESTOS LITIGATION: Odyssey Has $360.7M Losses, LAE at Dec. 31 Odyssey Re Holdings Corp.'s asbestos-related gross unpaid and loss adjustment expenses were US$360.7 million for the year ended Dec. 31, 2008, compared with US$339.3 million for the year ended Dec. 31, 2007. The Company's asbestos-related gross unpaid losses and LAE were US$346,267,000 for the nine and three months ended Sept. 30, 2008, compared with US$269,959,000 for the nine and three months ended Sept. 30, 2007. (Class Action Reporter, Nov. 21, 2008) The Company's asbestos-related net unpaid and LAE expenses were US$230.5 million for the year ended Dec. 31, 2008, compared with US$222.4 million. The Company's asbestos-related net unpaid losses and LAE were US$216,125,000 for the nine and three months ended Sept. 30, 2008, compared with US$170,270,000 for the nine and three months ended Sept. 30, 2007. (Class Action Reporter, Nov. 21, 2008) Included in the Company's reserves are amounts related to asbestos-related illnesses and environmental impairment, which, net of related reinsurance recoverables, totaled US$260.3 million as of Dec. 31, 2008 and US$256.9 million as of Dec. 31, 2007. Net losses and LAE incurred for asbestos claims increased US$41 million for the year ended Dec. 31, 2008 and US$63 million for the year ended Dec. 31, 2007. The Company's survival ratio for asbestos and environmental- related liabilities as of Dec. 31, 2008 is eight years. The underlying survival ratio for asbestos-related liabilities is eight years and for environmental-related liabilities is five years. The number of asbestos claims, with case reserves, as of Dec. 31, 2008 was 1,672, amounting to US$204.8 million in gross case losses and LAE reserves. The largest 10 reported claims accounted for 11.6 percent of the gross case reserves, with an average reserve of US$2.4 million. The number of asbestos claims, with case reserves, as of Dec. 31, 2007 was 1,554, amounting to US$216.8 million in gross case losses and LAE reserves. The largest 10 reported claims accounted for 14.9 percent of the gross case reserves, with an average reserve of US$3.2 million. Gross case reserves decreased in 2008, as newly reported claims and additional reported reserves on existing claims were less than claim payments in the year. The asbestos open claim count increased by 118, or 7.6 percent, during calendar year 2008. Based on an aggregation of claims by insured, the Company's 10 largest insured involvements accounted for 36.9 percent of its gross case reserves as of Dec. 31, 2008, compared with 42.3 percent as of Dec. 31, 2007. Net losses and LAE for the year ended Dec. 31, 2008 for asbestos claims were increased by US$41 million, principally attributable to loss emergence greater than expectations during the period. Headquartered in Stamford, Conn., Odyssey Re Holdings Corp. is an underwriter of reinsurance. The Company offers both treaty and facultative reinsurance to property and casualty insurers and reinsurers. It also writes insurance business through its offices throughout the United States and in London. |
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