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Q2 cat losses creep towards $2.5bn

Reported nat cat losses for the second quarter have exceeded $2.33bn, with the bulk of carriers yet to reveal their potential exposure.

The news follows a slew of notable disasters in Q2 that included floods in Europe, earthquakes in Ecuador and Japan and the Fort McMurray wildfires.

The worst hit so far has been absorbed by US insurance giant Allstate, which reported an estimated $835mn of cat losses for April and May alone.

The outsized loss, compared to its peers, was equivalent to 4.11 percent of shareholder equity.

Meanwhile, Cincinnati Financial predicted a cost of up to $170mn and Kemper said it was expecting its losses to total $52mn.

Chubb took an estimated $390mn hit but the figure comprised less than 1 percent of total shareholder equity. The international earthquake and flood events accounted for $70mn of the loss estimate, with the remaining $320mn stemming from US weather events and the Canadian wildfires.

Rival XL Catlin forecast losses of $240mn or 2.05 percent of shareholder equity.

Travelers predicted a $333mn loss, representing 1.35 percent of its shareholder equity.

Meanwhile, of the Bermudian players Argo unveiled the smallest projected hit of just $23mn from North American events. The loss represented 1.35 percent of the New York-listed carrier's shareholder equity.

Endurance revealed a larger $55.5mn estimated loss, although this was only 1.11 percent of shareholder equity.

Validus revealed it was expecting to pay out $26.9mn in relation to the Canadian wildfires, $15.3mn for the Japanese earthquake and $10.3mn for hailstorms in Texas.

It also predicted a $7.5mn claim from the loss-hit Jubilee oil field. In total, expected losses from the Validus stable equate to 1.61 percent of shareholder equity in the group.

Aspen, meanwhile, has forecast $65mn of cat losses for Q2, equivalent to 1.83 percent of shareholder equity.

Axis predicted a $104mn loss or 1.75 percent of shareholder equity in the firm.

Last week, Aon Benfield revealed insured catastrophe losses had reached $30bn for the first half of 2016 - the highest level since 2011.

The losses were slightly below a 10-year average of $31bn but above the longer-term average of $24bn dating to 2000, the reinsurance broker said.

Meanwhile, economic losses reached $98bn for the period.

From an insurance standpoint, severe convective storm was the costliest peril at $12.3bn or 42 percent of the loss total.

Most of the insured convective storm losses were from thunderstorms in the US, with Texas alone responsible for around 55 percent of the total.

The broker currently estimates insured losses from the Canadian wildfires to be $3.2bn.

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