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Report: U.S. insurers losing billions

Posted On Fri, June 24, 2011

May and June were among the costliest months on record for U.S. insurers, according to a new study from an insurance brokerage firm.

Aon Benfield reports that in May and June, the total estimated losses insurers sustained was $15 billion - almost three times more than the average loss of earnings due to severe weather between 1990 and 2010.

Steve Jakubowski, president of Impact Forecasting, Aon's catastrophe modeling development center, said much of the costs occurred in Joplin, Missouri, where a rare EF-5 tornado touched down.

"The tornado led to 154 fatalities in the city, becoming the deadliest singular tornadic event since the National Weather Service officially began keeping records in 1950," said Jakubowski. "In addition, it is worth noting that the Tuscaloosa and Joplin events will go down as two of the costliest singular tornadoes ever recorded."

The Insurance Information Institute reported similarly bleak numbers for the home insurance industry in the first three months of 2011 After taxes, according to III, U.S. property insurers earnings fell from $8.9 billion in 2010 to $7.8 billion when comparing last year's first quarter with this year's. 

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