New Quake/Hurricane Loss Estimates From Renaissance Re, W.R. Berkley, PartnerRe, State Auto

October 5, 2017

RenaissanceRe, W.R. Berkley Corp. and State Auto Financial Corp. are among the latest insurers and reinsurers to issue Q3 catastrophe loss estimates from Hurricanes Harvey, Irma and Maria, and the Mexico City earthquakes. For a larger roundup of other insurer/reinsurer preliminary catastrophe loss estimates, click here.

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RenaissanceRe Holdings estimates a net negative impact of $625 million in the third quarter from Hurricanes Harvey, Irma and Maria, as well as the Mexico City earthquakes.

The Bermuda-based reinsurer noted that all of these catastrophe events caused widespread damage to both personal and commercial property in and around the impacted regions.

RenaissanceRe currently estimates that losses from Hurricanes Harvey and Irma will have a net negative impact of approximately $225 million and $175 million, respectively, on its third quarter 2017 results of operations. Hurricane Maria and the Mexico City Earthquake will leave behind a net negative impact of approximately $225 million on RenaissanceRe’s Q3 2017 results, it said.

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W.R. Berkley Corp. disclosed preliminary estimated catastrophe losses of $110 million before tax relating to Hurricanes Harvey, Irma and Maria, as well as the earthquakes in Mexico. After tax, the number hits $72 million.

Berkley said its loss estimate takes into account all expected reinsurance recoveries and is inclusive of reinstatement premiums.

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State Auto Financial Corp. disclosed a pretax catastrophe loss estimate of $56.1 million for the 2017 third quarter, the bulk of which comes from Hurricanes Harvey and Irma.

Out of that number, Hurricanes Harvey and Irma product $32.5 million and $23 million, respectively, of the total catastrophe losses, with Specialty E&S Property contributing about 80 percent of the hurricane losses.

State Auto said it expects no recoveries from its property catastrophe treaty, which is subject to a $75 million retention per catastrophe event.

The insurer added its final number could change “due to the complexity of the claims and the preliminary nature of the information used to prepare the estimates.”

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PartnerRe anticipates approximately $475 million in combined, pretax catastrophe losses from its exposure to hurricanes Harvey, Irma and Maria for the 2017 third quarter.

Sources: RenaissanceRe, W.R. Berkley Corp., State Auto Financial Corp, PartnerRe