ACE Ltd. said it expects hurricanes and typhoons will result in the company facing total net catastrophe-related charges will be approximately $480 million pre-tax. And ACE said it will take a $400 million charge on its third quarter earnings as a result.

ACE was the third company to report on hurricane costs on Tuesday. Axis Capital Holdings Ltd. said it expects last month's hurricanes to cut its earnings for the third quarter by up to $210 million. And IPC Holdings Ltd. predicted its quarterly earnings to be reduced by $100 million as a result of the four hurricanes that hit Florida and the Caribbean and two Pacific typhoons.

Yesterday, Bermuda-based Aspen Insurance Holdings Ltd. expects losses from recent hurricanes will have a negative impact on its third quarter earnings of approximately $135 million, net of reinsurance and tax.

It also estimates that losses from Typhoon Songda could reduce its third quarter earnings by $13 million, net of reinsurance and tax.

A survey of those companies that have reported so far suggests that the season could cost Bermuda insurers and reinsurers around $2.5 billion.

The only positive news from the storms for underwriters is that they could force up catastrophe reinsurance and property and casualty rates.

ACE said the $480 million includes the previously announced loss estimate of approximately $100 million from Hurricane Charley, as well as loss estimates from Hurricanes Frances, Ivan and Jeanne, which struck the Caribbean and the United States in the months of August and September, and typhoons Songda, Chaba and Meari, which impacted Asia during the quarter.

In a statement yesterday, Aspen said that since it had received few formal claims from clients, particularly in the cases of Ivan and Jeanne, its estimates are based on the anticipated total industry losses from Hurricanes Charley, Frances, Ivan and Jeanne of at least $30 billion as well as on an extensive review of client exposures.

The company said: "There remains, however a significant level of uncertainty and as a result, the actual impact on the company from these storms could differ materially from the stated estimates."

Chief executive officer Chris O'Kane said: "Due to the rapid succession and overlapping footprint of the Florida storms, loss adjustment issues are complicating the claims process and delaying the reporting of claims at the reinsurance level.

"Nevertheless, we believe that industry losses of this magnitude are likely to have a significant impact on trading conditions leading to increases in price and improvement in terms and conditions for wind exposed property business in the US."