Insurer Expects Limited Exposure From Harvey; Coverage For Windstorm Damage Only

Property and casualty insurer and reinsurer Lancashire Holdings is not exposed to the first $40 million of windstorm reinsurance claims and does not expect to pay out huge amounts from Tropical Storm Harvey, its head of investor relations said. The most powerful hurricane to hit Texas in more than 50 years has caused deaths, forced tens of thousands of people to leave deluged homes and caused damage estimated at tens of billions of dollars, making it one of the costliest U.S. natural disasters. Lancashire, which writes policies for heavy-duty assets such as oil rigs, ships and aircrafts, said its exposure in Texas was that of a windstorm account, which excludes floods - the biggest cause of damage in the state.