IPC Holdings expects Hurricane Katrina to significantly impact third quarter earnings with the Bermuda-based property catastrophe reinsurer putting preliminary analysis of losses on third quarter income in the range of $350 million to $600 million.

The projected losses make up between 20 percent and 34 percent of the company?s shareholders? equity, or net worth, at the end of June, 2005, according to Marketwatch.

IPC President and CEO Jim Bryce said: ?While this is clearly a significant loss for IPC, it is comparatively inconsequential in relation to the tragedy and suffering being borne by the hundreds of thousands of people who have lost so much as a result of this horrendous catastrophe.?

The range is based on industry insured loss estimates, including marine and offshore energy losses, of $30 billion to $40 billion. It includes output from both industry and proprietary models, including pre-event, modelled exposure data provided by client companies. The estimates also include a review of contracts potentially affected by the event and limited preliminary information from both clients and brokers, the statement said.

The unique circumstances and severity of the catastrophe including the extent of flooding and limited access by claims adjusters, introduce additional uncertainty compounded by the potential for legal and regulatory issues regarding the scope of coverage.

Consequently, IPC said: The ultimate net impact of Hurricane Katrina losses on our net income might differ substantially from the foregoing range.?