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Reinsurers counting the cost of US tornadoes

Bermuda re/insurers Arch Capital Group and Hiscox today announced combined second-quarter catastrophe losses of around $150 million.The losses, which were dominated by the outbreaks of tornadoes in the US in April and May, come hard on the heels of an expensive first quarter for the industry, which included huge losses from earthquakes in New Zealand and Japan.Arch estimated that catastrophe losses to be booked in its second-quarter results, relating to another New Zealand earthquake earlier this month as well as the severe weather in the US, would be within a range of $90 million to $110 million.Arch added that approximately 85 percent of the losses, which are net of reinsurance and reinstatement premiums, relate to the second-quarter events, with the balance relating to re-estimation of first-quarter events.Hiscox estimated losses of £35 million ($56 million) from the tornadoes, based on an estimate of insured market losses of $15 billion to $25 billion.The company added that its estimates for other 2011 catastrophes are unchanged.“As there continues to be considerable uncertainty around the Japanese earthquake we have reserved at the upper end of our modelled range,” Hiscox said in a statement.“That range, as published in our May, is between $60 million and $150 million.”