Allied World Assurance Company Holdings this week announced it expects to record about $40 million in third-quarter crop reinsurance related losses as a result of the severe drought conditions in the Midwest of the United States.The company also expects to record between $5 million and $10 million in losses and loss expenses in the quarter related to Hurricane Isaac, which struck the Gulf Coast of the United States in late August.Analysts are expecting the Switzerland-based reinsurer to post $56.7 million, or $1.61 per share in operating profit in the third quarter, according to Thomson Reuters. Allied World is scheduled to report its third-quarter results on October 31.Other insurers in the industry have talked of crop-related losses. Ace CEO Evan Greenberg said in a second-quarter earnings call that the company’s best estimate for third-quarter crop losses was about $68 million.Alterra has also set expectations for the third quarter. In its second-quarter earnings report, the speciality insurer indicated it expects to see a crop underwriting loss of anywhere from $15 to $25 million in the third quarter.Munich Re said it is currently anticipating a net loss of about $198.5 million worth of crop failure covers.And Endurance Specialty Holdings, which has the greatest amount of crop insurance as a percentage of its total book at roughly 25 percent of net premiums written, expects the company’s crop underwriting loss to be in-line with the $50 million estimate the firm provided in August.Catastrophe modeller AIR Worldwide meantime, has predicted a gross loss ratio for the industry of 120-180 percent while estimating losses of between $13 billion and $20 billion from farmer claims.While much of the insured crop losses will be covered up by government subsidised crop insurance programmes, Standard & Poor’s says it could cost insurers and reinsurers more than $5 billion, but that losses, for the most part, will be manageable and contained to the third quarter.