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Bermuda reinsurers to feel sting of Texas hailstorm

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Bludgeoned: Nash Evans (right), 13, and his mother, Jennifer Evans, survey damage to their car after severe storms that moved through the Dallas area last week

Bermuda reinsurers can expect the claims to roll in after a Texas hailstorm last week caused an estimated $2 billion in insured losses.The baseball-sized hailstones put dents in cars, broke windows and damaged homes in the Dallas area.Meanwhile the most destructive wildfire in Colorado’s history has destroyed 189 homes, according to reports yesterday.Sandra Helin, president of the Southwestern Insurance Information Service, told Bloomberg News that the cost of claims from the storm may be driven by damage to older homes. She said the storms may bring 60,000 auto claims and “tens of thousands” from homeowners.“This didn’t hit in ranch area,” Ms Helin said yesterday in a telephone interview. “It was right in the suburbs, and then it hit an area with a significant number of historic homes. You can’t find tiles for some of those roofs anymore.”The hailstorms struck last Wednesday, damaging cars during rush hour on the Dallas Central Expressway. The previous record for insured damage from hail in the state was $1.1 billion in 1995, according to the Insurance Council of Texas.The Insurance Council, an Austin-based industry trade group, issued preliminary estimates for insured losses from last week’s storm at just $900 million, up from $800 million earlier today. About 50,000 auto and 20,000 homeowner claims have been reported so far, said Mark Hanna, a spokesman for the council.“How many more come in, well, that’s the million-dollar question right now,” Mr Hanna said. Adjusters are still assessing damage, he said.The costliest storm of any kind to hit Texas was Hurricane Ike in 2008 with about $12 billion in claims, according to the insurance Council.US insurance companies that will pay the claims will have some of their losses covered through the coverage they buy from Bermuda reinsurers.Companies including Allstate Corp, the largest publicly traded US residential insurer, have sought to boost returns on homeowners’ coverage by raising rates and changing policies to take into account the age of roofs.No insured estimates have yet been put out for the High Park Fire in Colorado, but the 189 homes it has destroyed has surpassed the 169 homes destroyed in the Fourmile Canyon wildfire that devastated a wide area of the state in 2010 and racked up insured losses of $217 million.While temperatures remained around the 100-degree mark in the High Park area yesterday, the high winds that had been fanning the flames calmed down significantly, allowing firefighters to claim that the fire is around 45 percent under control.

Threat to more homes: Fire burns in trees behind homes on the High Park wildfire near Fort Collins, Colorado