AM Best


Best's Briefing: Insured Losses In Northern California Earthquake Appear Manageable


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Michael Venezia
Senior Financial Analyst
(908) 439-2200, ext. 5034
michael.venezia@ambest.com

Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - AUGUST 28, 2014 04:15 PM (EDT)
A.M. Best does not expect the 6.0 earthquake that struck northern California early on Aug. 24, 2014, to result in any rating actions based on insured loss, according to a new Best's Briefing. The briefing, titled, "Insured Losses In Northern California Earthquake Appear Manageable," states that due to the magnitude, location and relatively low take-up rate of earthquake insurance, losses are not expected to be significant.

The earthquake, which was centered near Napa and shook the greater San Francisco Bay region, is the largest earthquake in the Bay Area since the magnitude 6.9 Loma Prieta earthquake in 1989. Experts say it is too early to put a firm dollar amount on the damage, although the U.S. Geological Survey said the earthquake's economic impact is likely more than $1 billion.

Some companies have reported a small number of initial claims after the earthquake, while others expect insureds to absorb the potential damage, if any, given the application of earthquake deductibles as a percentage of insured limits.

To access a complimentary copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=228207 .

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.