Bermuda's reinsurance companies will face their lowest pay-outs in 11 years for American catastrophes in the first three quarters of 2000.

In the run-up to the release of third quarter reports which are due out next week, reinsurance companies are expected to show an improvement in their bottom line.

According to estimates released yesterday by the Insurance Services Office Inc Property Claim Services Unit, US property/casualty insurers will pay homeowners and businesses $315 million for insured catastrophe losses -- the lowest third quarter amount in 11 years beginning in 1990.

For the first nine months of the 11 years this ranks eighth in total losses, ninth in number of claims and last in number of catastrophes.

The current quarter's $315 million in losses from three catastrophic events compares with $2.1 billion in losses from seven events in third quarter 1999.

Last year was dubbed `the year we would rather forget' and saw Bermuda companies report poor earnings across the board, despite an increase in diversity through a whole stream of mergers. Hurricanes combined with bad storms across Europe to push up pay-outs from all companies.

The highest-ever third quarter catastrophe losses were in 1992, when Hurricane Andrew, Iniki and six other events caused $17.4 billion in insured property damage from more than $1 million claims.

The three catastrophic events in the third quarter of this year affected 12 states, primarily in the Midwest. The worst catastrophe loss was $150 million from a thunderstorm-related event in the upper Midwest in early July.

Five states sustained most of the losses in the quarter -- Minnesota -- $105 million, Wisconsin -- $50 million, Ohio -- $45 million, Michigan $40 million and Illinois -- $16 million.

Insurers' catastrophe losses through the first nine months of the year totalled $3.48 billion, down from $8.06 billion in nine months in 1999 and $9.59 billion in the corresponding 1998 period.

For the first nine months of this year, insurers received more than 1.2 million personal and commercial property and auto damage claims. That compares with 2.4 million claims (twice as many) in the period the year before.