Katrina Cost Estimate Cut as Storm Spares New Orleans (Update9)

[steve2470]

http://quote.bloomberg.com/apps/news?pid=10000006&sid=a8tDhSCyniSU&refer=home

Aug. 29 (Bloomberg) -- Hurricane Katrina's estimated cost for insurers such as Allstate Corp. was cut to $9 billion to $16 billion by storm modeler Eqecat Inc. after the storm veered away from New Orleans.

Katrina is on track to be the second most-expensive hurricane to hit the industry after Andrew caused $20.8 billion, adjusted for inflation, of insured losses in 1992. Earlier, Eqecat forecast claims as high as $30 billion.

The storm came ashore today just south of Buras, Louisiana, with winds of 140 mph (225 kph) after weakening overnight, the National Hurricane Center said. Risk Management Solutions Inc., another modeler, predicted $10 billion to $25 billion. AIR Worldwide Corp. estimated $12 billion to $26 billion.

``People are breathing a sigh of relief that the storm has lost strength and that New Orleans appeared to be on the weak side of the storm,'' said Ray Stone, vice president of catastrophe operations at St. Paul Travelers Cos., the second- largest U.S. commercial insurer.


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