Everest Re estimates $600m in hurricane losses
Everest Re Group Ltd is estimating total pre-tax net catastrophe losses of $730 million for the third quarter.
About $600 million is attributed to Hurricane Ian, which made landfall on the west coast of Florida on September 28, with $500 million attributed to the reinsurance segment and $100 million to the insurance segment.
All other events are estimated to total $130 million, with $120 million attributed to the reinsurance segment and $10 million attributed to the insurance segment.
All amounts are net of estimated recoveries and reinstatement premiums.
For Hurricane Ian, Everest said, its loss estimate is based on insured industry losses of approximately $55 billion, driven in part by the significant social inflation in Florida.
For all other global catastrophe events, Everest’s loss estimate is based on insured industry losses of approximately $15 billion.
Juan C. Andrade, the president and CEO of Everest Re Group, said: “Our thoughts are with those impacted by the severe weather events across the globe. We are dedicated to supporting our customers in their time of need.
“Hurricane Ian is likely to be the second-largest hurricane-driven industry loss in US history.
“Everest’s focused execution of its diversification strategy combined with our underwriting discipline has mitigated our total exposure to approximately 1 per cent of our currently estimated Hurricane Ian industry loss with our reinsurance division expected to be less than 1 per cent.”
The company is to release its third-quarter earnings on October 26.