Insured losses from Winter Storm Fern are estimated at $6.7 billion, according to a flash estimate from catastrophe modelling firm Karen Clark and Co, adding to a growing run of weather-related claims facing global reinsurers.

The storm, which brought snow, ice and prolonged freezing temperatures to more than 30 US states from January 23, caused widespread property damage, with KCC identifying freeze-related losses — including burst pipes and power outages — as the primary driver.

Commercial properties are expected to account for a disproportionate share of claims due to larger average loss sizes and more vulnerability when heating systems are shut down outside operating hours.

Losses were heaviest in southern and southeastern states such as Texas and Tennessee, where infrastructure is less adapted to extreme cold.

While the event is not expected to be market-moving on its own, it adds to an elevated catastrophe loss environment for Bermuda’s reinsurance sector.

Bermuda reinsurers play a major role in absorbing American catastrophe risk. Total catastrophe exposure underwritten from the island exceeds $220 billion globally, according to regulatory and market estimates.

In recent years, insured global catastrophe losses have exceeded $100 billion annually, which puts pressure on underwriting results and pricing discipline.

Industry analysts have repeatedly pointed to winter storms, wildfires and secondary perils as key reasons for volatility in reinsurers’ earnings.