Oct 3 Allied World Assurance Company Holdings AG
said it expects to record about $40 million in crop
reinsurance related losses in the third quarter as a result of
the severe drought conditions in the Midwest United States.
The reinsurer also expects to record between $5 million and
$10 million in losses and loss expenses in the quarter related
to Hurricane Isaac, which struck the Gulf Coast of the United
States in late August.
Analysts are expecting the Switzerland-based reinsurer to
post $56.7 million, or $1.61 per share in operating profit in
the third quarter, according to Thomson Reuters I/B/E/S.
Disaster modeler AIR Worldwide has pegged total crop
insurance losses due to the drought at up to $20 billion.
Two of the largest crop insurers in the United States ACE
Ltd and Wells Fargo's RCIS said in July that
they were expecting modest losses related to the drought.
Allied World is scheduled to report third-quarter results on
Allied World shares closed at $78.60 on Wednesday on the New
York Stock Exchange.