Dean Losses ‘Manageable’ Says Fitch

Fitch Ratings indicated that that it expects insured losses from Hurricane Dean, “despite having been a Category 5 storm,” to be manageable for the insurance industry.

The preliminary estimates range from a low of $750 million to a high of $2 billion Fitch said in its report entitled, “Hurricane Dean: Preliminary Analysis.”

Luck played some part in directing the powerful storm away from areas where it could have caused heavy damages. As Fitch notes, it “could have been much worse but, fortunately, Dean made landfall in a relatively rural portion of Mexico, missing most population and tourist centers.”

Most of the losses, according to Fitch, “will be commercial insurance losses in Jamaica and, to a lesser extent, Mexico.” Fitch also indicated that it “expects a substantial portion of the insured loss to be borne by global reinsurers who typically have significant financial strength.”

Fitch’s special report is available at: www.fitchratings.com.

Source: Fitch