BRIT's forecast losses reach £82.5m

BRIT Insurance Holdings heaped more gloom on shareholders today as it raised its forecast for losses resulting from the 11 September atrocities by nearly £13m to £82.5m.

The group's exposure is thought to make it the biggest sufferer of all the quoted Lloyd's insurance vehicles. Yesterday Cox Insurance increased estimates of its losses from the attacks on the US by £25m to £67m.

BRIT said it had been notified of a new property claim in Manhattan that significantly increased its likely exposure, prompting today's announcement.

Last month it suspended its interim dividend and warned that its exposure was likely to reach £69.7m after recoveries from re-insurers. The total before reinsurance kicking in is now thought likely to be £182.9m.

Of BRIT's £82.5m claim estimate, £25.2m was from its non-Lloyd's catastrophe reinsurance arm. The remainder is attributable to policies written by its Lloyd's activities, mostly made up of BRIT's Wren reinsurance, property and casualty insurance syndicates.

The group's shares improved 2p to 75p as chief executive Neil Eckert said re-insurers from which it was seeking to recover funds were in sound financial health.