Reuters logo
FACTBOX-Insurers and reinsurers count the costs of recent hurricanes, quakes
November 20, 2017 / 12:43 PM / a month ago

FACTBOX-Insurers and reinsurers count the costs of recent hurricanes, quakes

(Adds Great-West Lifeco; updates AIG, Beazley, Hiscox, Lancashire, Munich Re, RSA, Swiss Re)

Nov 20 (Reuters) - Losses from Hurricane Maria and other recent natural disasters, including hurricanes Irma and Harvey and the Mexico City earthquake, have led global insurers and reinsurers to issue profit warnings.

Below are statements from insurers and reinsurers in the wake of the catastrophes (in alphabetical order): AIG American International Group Inc reported pretax catastrophe losses of about $3 billion in the third quarter mainly related to hurricanes Harvey, Irma and Maria and additional catastrophe losses.

ALLSTATE Allstate Corp, the second-largest U.S. homeowners’ insurer based on premiums collected, estimated pre-tax catastrophe losses of $593 million, net of reinsurance recoveries, for August.

ARCH CAPITAL Arch Capital Group Ltd estimated preliminary after-tax losses between $285-$345 million from Hurricanes Harvey, Irma and Maria, the Mexican earthquakes, and other more minor global events.

ARGO GROUP Underwriter Argo Group International estimated preliminary pre-tax catastrophe losses of $85-110 million from hurricanes Harvey, Irma and Maria as well as the earthquake in Mexico City.

ASPEN INSURANCE Aspen Insurance Holdings estimated about $310 million in pre-tax losses related to hurricanes Harvey, Irma and Maria and $50 million from other events, the largest of which relate to weather-related losses and the Mexican earthquakes.

AXIS CAPITAL Axis Capital Holdings Ltd said its initial estimate of net financial impact from catastrophe losses in the quarter ended Sept.30 was $578 million. The estimate included losses from Hurricanes Harvey, Irma, and Maria and the earthquakes in Mexico.​ BEAZLEY Lloyd’s of London insurer Beazley increased the expected second-half pretax profit hit from natural catastrophes by $25 million to $175 million as a result of wildfires in California.

CHUBB U.S. property and casualty insurer Chubb Ltd estimated after-tax losses of up to $1.28 billion from hurricanes Harvey and Irma. It expects insured losses of about $520 million from Harvey and $640 million to $760 million from Irma after tax.

The world’s largest listed property and casualty insurer estimated the maximum net insurance and net reinsurance losses related to Hurricane Maria would be about $200 million after tax for the third quarter.

EMC INSURANCE EMC Insurance Group estimated third-quarter catastrophe and storm losses at about $29.4 million​.

EVEREST RE Everest Re Group Ltd estimated pretax catastrophe losses of $1.2 billion, with a net economic impact of $900 million after taxes from Hurricanes Harvey, Irma, and Maria and the earthquakes in Mexico.

GREAT-WEST LIFECO Great-West Lifeco Inc recorded a reinsurance loss of $175 million after-tax for estimated claims from hurricanes Harvey, Irma and Maria. ​ HANNOVER RE German reinsurer Hannover RE said it could miss its 2017 profit target because of claims from the natural disasters, its first such warning since the 2008 financial crisis.

Hannover RE does not expect its earnings per share to increase in 2017 due to payouts related to damage done by hurricanes which hit the United States.

HCI GROUP HCI Group’s principal operating subsidiary, Homeowners Choice Property & Casualty Insurance, a provider of home insurance in Florida, issued a preliminary estimate indicating its losses related to Hurricane Irma would be $100-$300 million.

HISCOX Lloyd’s of London underwriter Hiscox Ltd said it estimates net claims for hurricanes Harvey, Irma and Maria to total around $225 million, having previously estimated the same amount for Harvey and Irma alone.

The insurer, which underwrites a range of risks from oil refineries to kidnappings, said claims arising from the Mexico earthquakes and California wildfires were not expected to be material for the group.

LANCASHIRE Lancashire Holdings Ltd reported a third-quarter pretax loss and recorded a net loss from hurricanes Harvey, Irma and Maria, and earthquakes in Mexico, of $165 million, which it called an “extraordinary level of loss activity”.

LLOYD‘S OF LONDON Lloyd’s of London estimated net claims of $900 million for Hurricane Maria, which caused devastation in Puerto Rico last month.

The specialist insurance market lowered its net claims estimates for hurricanes Harvey and Irma to $3.9 billion from initial estimates of $4.5 billion.

MAIDEN HOLDINGS Maiden Holdings Ltd said it expected a net impact from Harvey on its third-quarter results of $6-$18 million and $2-$13 million from Irma.

MAPFRE Spain’s Mapfre SA said the size and frequency of hurricanes in the Caribbean and earthquakes in Mexico would imply a net cost of between 150-200 million euros ($177- $237 million) on its attributable result for the year.

MS&AD INSURANCE Japan’s MS&AD Insurance Group Holdings Inc estimated up to 110 billion yen ($978.65 million) in incurred losses related to the hurricanes and earthquakes in the Americas and said it was reviewing its FY2017/18 earnings forecasts.

MUNICH RE Germany’s Munich Re said insured losses from three big hurricanes in North America this year have cost the industry around $100 billion.

For Munich Re alone, the three hurricanes accounted for losses of 2.7 billion euros in the third quarter, leading to a quarterly net loss of 1.4 billion euros at the reinsurer. Munich Re said it expected a “small profit” for the full year.

PROASSURANCE CORPORATION Proassurance Corp estimated net pretax losses from hurricanes Harvey, Irma and Maria to be about $7.5 million.

QBE INSURANCE GROUP Australia’s biggest insurer, QBE Insurance Group, revealed a $600 million earnings hit on its business from hurricanes in the Atlantic and earthquakes in Mexico. RENAISSANCERE RenaissanceRe Holdings Ltd reported $615 million of “net negative impact” from hurricanes Harvey, Irma and Maria and the Mexico City earthquake. RLI CORP Specialty insurer RLI Corp said it expects third-quarter pretax losses of $30-$40 million from Harvey and Irma, net of reinsurance.

RSA INSURANCE Hurricanes blew insurer RSA’s underwriting performance off course in the third quarter as it set aside an initial 50 million pounds for weather losses in the United States and the Caribbean.

British motor and home insurer RSA had said its UK business would see catastrophe losses from the U.S., Caribbean and Mexico, affecting September results in the marine and international portfolios.

SCOR French reinsurer Scor reported a 430 million euro ($508 million) impact from hurricanes Harvey, Irma and Maria and the Mexico earthquake.

SWISS RE Swiss Re, the world’s second-largest reinsurer, estimated its claims burden from hurricanes Harvey, Irma and Maria in the United States and from two earthquakes in Mexico at roughly $3.6 billion in the third quarter.

A rise in insurance premiums, especially in areas affected by recent hurricanes and disasters, will help Swiss Re recover from almost half a billion dollars of losses in the first nine months of this year, it said.​

TALANX German insurer Talanx warned it may miss its profit target for 2017 as its reinsurer Hannover Re is being hit by major claims from a series of hurricanes and an earthquake in Mexico. TRAVELERS Travelers Cos Inc, the No. 2 U.S. commercial property and casualty insurer, recorded $700 million in catastrophe losses from the destruction wrought by hurricanes Harvey and Irma.

UNIVERSAL INSURANCE HOLDINGS Universal Insurance Holdings Inc estimated gross losses from Hurricane Irma, from Florida and other southeastern U.S. states, will be $350-$450 million.

The company added that because of its property and casualty unit’s “substantial” reinsurance programme, its expected net pretax losses relating to the hurricane were $35 million.

VALIDUS Insurer and reinsurer Validus Holdings Ltd estimated net losses from hurricanes Harvey, Irma and Maria and the Mexico City earthquake of $412.7 million.

ZURICH INSURANCE GROUP Zurich Insurance Group said that Farmers Re faced a hit of no more than $20 million in the second half from catastrophes such as hurricanes Irma and Harvey.

The insurer estimated that hurricanes Harvey, Irma and Maria would trigger around $700 million in claims in the third quarter net of reinsurance and before tax.

($1 = 112.4000 yen)

$1 = 0.8463 euros Compiled by Noor Zainab Hussain in Bengaluru; editing by Jason Neely

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below