Bermuda insurers RenaissanceRe, Platinum Underwriters and Allied World Assurance Company last night revealed their initial loss estimates resulting from Hurricanes Gustav and Ike.

RenRe expects its combined losses from the storms to run to around $275 million, while Platinum's estimation was $105 million. Allied said it stood to lose as much as $80 million from the two most damaging storms so far of this year's hurricane season.

Meanwhile, Platinum also revealed its third-quarter results, to be announced on October 21, would include investment losses of $18 million related to exposure to securities including some linked to collapsed investment bank Lehman Brothers, as well as the Royal Bank of Scotland and US mortgage giant Fannie Mae.

RenRe also said it had current direct holdings of fixed maturity securities issued by Lehman Brothers and its subsidiaries of $8.7 million within its fixed maturity investment portfolio.

Allied World said its initial combined loss estimate for Hurricanes Gustav and Ike range from $55 million to $80 million.

Included in these amounts are ranges from $40 million to $55 million from the company's property segment and $15 million to $25 million from the company's reinsurance segment. The companies' loss estimates are derived from preliminary claims information obtained from clients and brokers, a review of the terms of in-force policies and contracts and catastrophe modelling analysis.

Allied chief executive officer Scott Carmilani said: "Allied World's expected losses from Hurricanes Gustav and Ike are a good reflection of our risk management efforts. The total net losses should prove to be well within our risk expectations and below our tolerance for such events. Our business emphasis this year continues to be on the specialty casualty niche markets, and simply working to maintain our property business where we believe it makes sense.

"We believe that our business model and conservative risk tolerance are working well during this period of unprecedented turmoil in the insurance and financial markets."

RenRe said most of its estimated storm losses were attributable to Hurricane Ike. The reinsurer added that given the magnitude and recent occurrence of these events, meaningful uncertainty remained regarding losses.

Clarifying its investment exposure to companies that have been hard hit by the credit crisis, RenRe added that it had insignificant direct holdings of fixed maturity securities issued by American International Group and Washington Mutual.

RenRe also has insignificant reinsurance recoverables and premiums receivable from AIG.

RenRe added it had no direct exposure to preferred or common shares issued by Lehman Brothers, AIG, WaMu, the Fannie Mae or the Freddie Mac.

Several other Bermuda companies had previously announced their loss estimates relating to the storms.

Axis Capital has estimated combined losses from both hurricanes will total $310 million to $430 million, net of reinstatement premiums.

Arch Capital Group expects losses between $105 million and $180 million from Gustav and Ike, while XL Capital's estimates put its losses between $195 million and $270 million from both storms.