Hurricane Katrina will be the costliest single event for insurers since the September 11 attacks, companies predicted today.
Estimates of losses ran as high as $26bn (£14.5bn) before Katrina hit the Gulf of Mexico's coast.
Air Worldwide of Boston yesterday forecast a payout of between $12bn and $26bn, while Risk Management Solutions of Newark, California, estimated $10bn to $25bn.
Those were pared back today as New Orleans escaped the brunt of the fiercest storm to hit the US since Hurricane Andrew smashed into southern Florida in 1992.
The city remained on the western, less powerful side of the hurricane, which brought winds of 140mph ashore with it.
However, damage was severe to catastrophic in much of Louisiana and Mississippi, with the tourist resorts of Biloxi and Gulfport particularly badly affected.
In New Orleans, one of the levees that protect the city, which sits below sea level, was breached. At least 80 people died as a result of the storms, according to unconfirmed reports.
Fitch Ratings, the international ratings agency, said Katrina would probably be the most expensive single event for insurers since the September 11 attacks of 2001, which cost it at least $50bn.
Munich Re, the world's largest reinsurer, estimated total insured losses from Katrina at $15bn to $20bn and put its own share at up to $488m.
Swiss Re, another big reinsurer, estimated that total claims may be comparable to those from Hurricane Andrew.
