Odyssey Re Holdings Corp. (NYSE: ORH) announced today that the combined
after-tax effect of Hurricanes Ike and Gustav on its third quarter
results is expected to range from $60 million to $90 million dollars.
This estimate is net of reinstatement premiums and applicable
reinsurance recoveries. Over 90% of OdysseyRe’s
estimated loss is attributable to Hurricane Ike.
This estimate is based on reports from clients and ceding companies,
from OdysseyRe’s internal modeling and by
reference to various estimates of the size of the industry loss. There
remains considerable uncertainty regarding this estimate, as numerous
ceding companies have yet to report their estimate of loss subject to
OdysseyRe’s reinsurance contracts.
OdysseyRe also announced that it has no holdings in the debt, preferred
or common securities of any of the major financial institutions that
have experienced material loss of value during the last quarter. During
the third quarter, OdysseyRe’s investment
portfolio generated a favorable rate of return, which will be discussed
in detail on its earnings conference call.
Odyssey Re Holdings Corp. is a leading worldwide underwriter of property
and casualty treaty and facultative reinsurance, as well as specialty
insurance. OdysseyRe operates through its subsidiaries, Odyssey America
Reinsurance Corporation, Hudson Insurance Company, Hudson Specialty
Insurance Company, Clearwater Insurance Company, Newline Underwriting
Management Limited, Newline Asia Services Pte. Ltd. and Newline
Insurance Company Limited. The Company underwrites through offices in
the United States, London, Paris, Singapore, Toronto and Latin America.
Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under
the symbol ORH.
Certain statements contained herein may constitute forward-looking
statements and are made pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the
following: a reduction in net income if the Company's loss reserves are
insufficient; the occurrence of catastrophic events with a frequency or
severity exceeding the Company’s estimates;
the lowering or loss of one of the Company's financial or claims-paying
ratings, including those of the Company’s
subsidiaries; an inability to realize the Company's investment
objectives; a decrease in the level of demand for the Company's
reinsurance or insurance business, or increased competition; emerging
claim and coverage issues; risks relating to ongoing investigations by
U.S. government authorities; the risk that ongoing regulatory
developments will disrupt the Company's business or mandate changes in
industry practices that increase the Company's costs; changes in
economic conditions, including interest rate, currency, equity and
credit conditions; the Company's inability to access its subsidiaries'
cash; loss of services of any of the Company's key employees; risks
related to the Company's use of reinsurance brokers; failure of the
Company's reinsurers to honor their obligations; regulatory and
legislative changes; risks associated with the growth of the Company's
specialty insurance business; and other factors that are described in
the Company's filings with the Securities and Exchange Commission.
Except as otherwise required by federal securities laws, we undertake no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
Odyssey Re Holdings Corp.
R. Scott Donovan, 203-977-0199
Chief
Financial Officer
