U.S. P/C Catastrophe Losses Reached a Record $53B in 2017: A.M. Best

March 20, 2018

U.S. P/C insurance catastrophe losses in 2017 reached $53 billion in 2017, a surge of close to 110 percent compared to 2016, according to a new A.M. Best report.

As expected, insured losses from hurricane and wildfire events in the latter part of the year drove much of the results and established some new records.

Among them: “2017 marked the first year since 2005 that four hurricanes made U.S. landfall in one season,” according to A.M. Best.

The ratings agency pointed out that a Category 3 hurricane or worse hadn’t made U.S. landfall since 2005. But in 2017, Hurricanes Harvey, Irma and Maria struck the U.S. in rapid succession, all making landfall as Category 4 storms. After that trio, Hurricane Nate made landfall as a Category 1 storm, making the four-hurricane record.

These storms, combined with historic wildfire damage in California, led to the insured catastrophe loss record, A.M. Best explained.

The last time insurers reported record U.S. P/C insurance catastrophe losses was in 2011, at a painful but much lower number of just under $42 billion, as A.M. Best said. Those results included losses related to the Tohoku earthquake and the subsequent tsunami in Japan. Thailand floods and an active U.S. tornado season that year also contributed to the catastrophe loss.

Other data from 2017, from the A.M. Best report:

The full A.M. Best report is called: First Look – 2017 Property/Casualty Financial Reports.

Source: A.M. Best