October 3, 2017 / 8:54 AM / 9 months ago

Insurers and reinsurers count cost of hurricanes, quakes

(Reuters) - Losses from Hurricane Maria and other recent 2017 natural catastrophes, including Hurricanes Irma and Harvey, the Mexico City earthquakes and other events, have led global insurers and reinsurers to issue profit warnings.

Destroyed trees are seen as a car drives past following Hurricane Maria in Guaynabo, Puerto Rico, October 2, 2017 . REUTERS/Alvin Baez

Below are statements from insurers and reinsurers in the wake of the catastrophes (in alphabetical order):


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.


Lloyd’s of London insurer Beazley said losses from hurricanes Harvey, Irma and Maria and a series of earthquakes in Mexico would reduce its 2017 earnings by about $150 million.


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.


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.


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.


Lloyd’s of London underwriter Hiscox Ltd estimated it would face net claims totalling about $225 million from Harvey and Irma.


Lloyd’s of London expects net losses of $4.5 billion from hurricanes Harvey and Irma, which analysts said would eat into the insurer’s capital and hit its profitability. Lloyd’s 80-plus syndicates have already paid out more than $160 million in claims from Harvey and more than $240 million from Irma.


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.


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


Germany’s Munich Re warned it could miss its profit target this year, the first major reinsurer to flag a hit to earnings from damage caused by hurricanes Harvey and Irma.


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


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.


Specialty insurer RLI Corp said it expects third-quarter pretax losses of $30-$40 million from Harvey and Irma, net of reinsurance.


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


French reinsurer Scor said hurricanes Harvey and Irma are expected to represent an earnings event rather than a capital event in the third quarter.​


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.

Local residents sit at their apartment's balcony as areas of San Juan are still left without electricity following Hurricane Maria in Guaynabo, Puerto Rico, October 2, 2017. REUTERS/Alvin Baez

Compiled by Noor Zainab Hussain in Bengaluru; Editing by Jason Neely

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