Canadian Underwriter

2016 Q4 preliminary loss estimate for natural catastrophes US$245 million: XL Group

January 10, 2017   by Canadian Underwriter

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XL Group Ltd.’s insurance and reinsurance segments are almost evenly split with regard to accounting for the company’s approximately US$245 million, natural catastrophe net loss estimate for the fourth quarter of 2016.

Huge hurricane between Florida and Cuba. Elements of this image furnished by NASAThe preliminary loss estimate “is pre-tax and net of reinsurance and reinstatement premiums and is split approximately US$125 million in the Insurance segment and US$120 million in the Reinsurance segment,” notes an XL Group statement Tuesday.

Related: Hurricane Matthew causes up to US$15 billion impact to U.S. and Caribbean economies in October: Aon Benfield

Estimated contributing losses include about US$130 million in net losses from Hurricane Matthew split approximately evenly between Insurance and Reinsurance, the company reports. In addition, the estimate includes approximately US$75 million in net losses from the recent earthquake activity in New Zealand, with approximately 75% of these losses in the Reinsurance segment.

Related: Insured losses of New Zealand quake could be as much as US$3.5 billion: AIR Worldwide

The remaining nat-cat losses incurred during 2016 Q4 – none of which was individually significant – “impacted the Insurance segment and were the result of a number of smaller events in the fourth quarter and previous quarters of 2016.”

Related: XL Group’s preliminary loss estimate for nat-Cats in 2016 Q2 US$240 million, Fort Mac wildfires largest loss

The global insurance and reinsurance company cautions that actual losses may differ materially from preliminary estimates, noting “there is considerable uncertainty associated with the loss estimates of these events and such estimates are accordingly subject to revision as additional information becomes available.”

A fuller picture is expected when XL Group releases its 2016 Q4 and full-year 2016 results, scheduled for Feb. 1, 2017.

Through its subsidiaries and under the XL Catlin brand, XL Group provides property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world.

Related: XL Group reports combined ratio up 6.1 points in second quarter, net income drops substantially