(Reuters) - Property and casualty insurer Lancashire Holdings Ltd (LRE.L) on Monday forecast catastrophe losses of $25 million to $45 million (34.3 million pounds) from recent hurricanes and typhoons, resulting in a negative return-on-equity in the third quarter.
The company, a provider of insurance cover for heavy-duty assets such as oil rigs, ships and aircraft, also estimated ultimate net losses of about $30 million in its marine portfolio.
“Given these loss estimates, the company expects that it will produce a negative return on equity for the third quarter of 2018. Absent these events, the company would have been profitable for the third quarter,” Lancashire said.
However, the company said it expects to remain profitable for the first nine months of 2018.
Lancashire said the catastrophe loss estimates include its exposure through its Bermuda, UK and Lloyd’s operations, adding that its exposure to hurricanes and typhoons were spread across property, reinsurance, cargo, marine and energy.
Lancashire said the estimates took into account the amount it would recover for its reinsurance programme.
Insured losses from Hurricane Florence, which slammed into North Carolina last month, was expected to range from $2.8 billion to $5 billion for the sector, said RMS, a risk modelling and analytics firm on Monday.
The firm estimated insured losses to Japan from Typhoon Jebi to be between $3 billion and $5.5 billion.
Another catastrophe risk modelling firm, AIR Worldwide, estimated industry insured losses for typhoon Mangkhut to be between $1 billion and $2 billion.
The insurance industry faced record bills from hurricanes, earthquakes and wildfire of over $135 billion last year and global insurers are braced for the Atlantic hurricane season.
Reporting by Arathy S Nair in Bengaluru; Editing by Amrutha Gayathri, Bernard Orr