XL Group Estimates $250M in Q4 Losses: Calif. Wildfires to Blame

December 7, 2017

XL Group disclosed preliminary natural catastrophe pre-tax loss estimates of approximately $250 million for the 2017 fourth quarter, stemming largely from wildfires in Northern California.

The parent company of XL Catlin said the estimate is based on losses through Dec. 1. Of the $250 million estimate, $200 million comes from its reinsurance segment, mostly due to the October 2017 wildfires.

“Other small events,” helped fuel the remaining losses, XL Catlin said.

The insurer and reinsurer said its estimates are pre-tax and net of reinsurance, reinstatement and adjustment premiums, as well as redeemable non-controlling interest.

XL Group reported $1.48 billion in natural catastrophe pre-tax losses in the third quarter, a figure it blamed mostly on Hurricanes Harvey, Irma and Maria. That hit added 58.8 points to its loss ratio, and led to a 2017 third quarter net loss of $1.04 billion.

After XL Group released its third-quarter results, XL CEO Mike McGavick said that the catastrophes brought “a unique devastation to those impacted.” He added that the events left behind a “significant” impact on XL Group’s financial results.

In the 2016 third quarter, XL Group booked $97.4 million in pre-tax catastrophe losses.

Source: XL Group