American National Property and Casualty, Louisiana Insurance Co. and their subsidiaries have revised the estimated pretax loss, after reinsurance, from Hurricane Katrina to $42 million.

With reinsurance, insurance companies share risk. Part of an insurer's risk is assumed by other companies in return for a part of the premium fee paid by the insured. Reinsurance allows companies to take on risks too big for one insurer to carry alone.

American National said Hurricane Rita caused a pretax loss, after reinsurance, of $10.4 million. Before reinsurance, the pretax loss is $25 million.

American National said it based its estimate on information it received through Oct. 3 on claims that have been settled, information received from its adjusters and from future expected claims. The company will refine estimates when it's able to assess areas hit by hurricanes, complexities of losses, legal issues and regulatory matters.

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