Insurers Bruised, not Battered by Sandy

As the rubble settles along the U.S. Northeastern coastline devastated by superstorm Sandy, insurers continue to offer initial estimates of their losses. Sandy, a deadly 1,000-mile wide storm that took the lives of 132 people as it swept up the Northeastern seaboard in late October, is expected to cost insurers up to $25 billion in total losses. By these estimates Sandy is being classified as the second-costliest storm after hurricane Katrina in 2005. AIG and Allstate have already estimated their Sandy losses at $1.3 billion and $1 billion respectively, while Swiss Re, the world’s No. 2 reinsurer, reported that it expects to pay out $900 million.