U.S. property and casualty insurers paid out a record $40.8 billion in the third quarter to homeowners and businesses hit by Hurricane Katrina

NEW YORK -- U.S. property and casualty insurers paid out a record $40.8 billion in the third quarter to homeowners and businesses that were hit by Hurricane Katrina and other natural disasters, according to an insurance data group.

The ISO's Property Claim Services unit said Monday the preliminary estimates for the July-September period indicate that 2005 will be the costliest year ever for catastrophe damages.

The group, which is based in Jersey City, estimated that Katrina, which hit the Gulf Coast on Aug. 29, resulted in some $34.4 billion in claims in the quarter, including more than $25 billion from Louisiana. Hurricane Rita, which hit Louisiana and Texas on Sept. 24, prompted claims of $4.7 billion. And Hurricane Dennis, which struck Alabama and the Florida Panhandle on July 10, caused $1.1 billion in claims. Payouts for several smaller storms were also included in the third-quarter total.

The third-quarter insured losses exceeded the previous high of $23.7 billion reported in the third quarter of 2004, when claims reflected a series of hurricanes in Florida.

The group said that property and casualty insurance claims totaled $43.8 billion for the first nine months of the year, up from $24.7 billion in 2004. Source>>>