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Bermuda re/insurers await further cat losses from US tornadoes

Bermuda’s re/insurance industry is bracing itself for more catastrophe losses after an expensive first quarter from the deadly tornadoes that have wreaked havoc in the United States.The storms, some of which have been classified as EF5 storms - the most powerful category - killed around 300 people.Catstrophe modelling company Eqecat estimated on Friday that insured losses from the most recent outbreak of tornadoes are likely to range between $2 billion and $5 billion.There have been hundreds of touchdowns, some tornado tracks reported to be almost a mile wide and tens of miles long, causing hundreds of fatalities.Some of the worst tornado damage has been seen in Tuscaloosa, Alabama, where a massive tornado hit the city’s business district.Alabama’s agriculture commissioner also reported that the tornadoes and storms caused multi-million-dollar damage to the poultry industry in the north of the state. Commissioner John McMillan said about 200 poultry houses were destroyed and another 180 damaged. A standard poultry house can hold about 20,000 chickensEqecat said even though the tornado season has only just begun, it is already setting records.“Tornado activity in April is putting 2011 into the record books,” Eqecat’s statement said. “The US National Weather Service report of cumulative tornado activity compared to historical activity shows that this year’s is about 30 percent higher than the historic recorded maximum. The weather service produces an ‘inflation adjusted’ data set to account for under- and over-reporting of tornadoes in the historical set, and 2011 is a very active year.”Eqecat also estimated that insurers could expect losses of around $100 million from fires racing across drought-stricken west Texas, driven by 30mph winds.