Insurers on the up after Hurricane Irene let-off

Shares in major insurers were rising today as analysts took the view that the effects of Hurricane Irene could have been much worse.

Losses from the latest storm to hit America are being put at between $2 billion (£1.22 billion) and $5 billion. That compares to a $45 billion hit from Hurricane Katrina.

Loretta Worters of the US Insurance Information Institute said: "Irene's impact on insurers will be minimal."

Joy Ferneyhough of Espirito Santo said: "Losses from Hurricane Irene are expected to be manageable for the industry as the storm generated much less damage than had been feared."

She thinks there is no reason for insurers to up premiums as a result of the storm.

"Overall, we believe that a storm of circa $20 billion+ was required to generate material price impact," Ferneyhough said.

Shares in UK insurers were up today. Amlin rose 5.5p to 302.8p. Catlin was up 10p to 320p.

Weather experts say Irene lost strength when it took a more westerly path than originally forecast.

Total economic losses from the storm, including those not insured, may be about $7 billion.

Insured losses in other notable natural disasters include more than $22 billion for Hurricane Andrew in 1992 and over $6 billion for Hurricane Rita in 2005.