Zurich Insurance Group said it property/casualty business will deal with approximately $700 million in pre-tax losses for Q3 relating to Hurricanes Harvey, Irma and Maria.
The number is also net of reinsurance, and after-tax losses should be in the $620 million range, Zurich said.
Final catastrophe losses should take some time to be compiled “due to the nature of the events,” Zurich said. That said, Zurich added it doesn’t expect to incur any reinstatement costs for reinsurance relating to the catastrophe events.
Zurich also noted that it dealt with other small events during Q3. As well the Zurich-owned Farmers Re is expected to incur $17 million in pre-tax losses relating to the three hurricanes. That number is also net of reinsurance.
Zurich said the losses are not expected to have a material impact on its financial strength and capital flexibility.
“While significant, these events have demonstrated the effectiveness of our underwriting and the improvements made in our reinsurance programs over the past year, which have ensured that the overall losses remain well within our overall risk tolerance,” said Group Chief Executive Officer Mario Greco. “Our thoughts and best wishes go out to those affected by these tragic events.”
Zurich expects to disclose its results for the first nine months of 2017 on November 9, 2017.
Source: Zurich Insurance