‘Calm continues’ as catastrophe losses decline in Canada, U.S. during first half of year

Catastrophe losses in Canada during the first half of this year fell 98% over last year, with only two catastrophe events designated so far, Property Claims Services reported Wednesday.

Both wind and thunderstorm events occurred in June, with the first event’s losses estimated at $34 million. An estimate for the second event is not yet available.

Catastrophe losses during the first half of this year (excluding the second June loss event) are also below the five-year average of $641 million, PCS reported.

“The steep year-over-year decline results from the fact that last year’s flooding – which led to the highest catastrophe loss levels since PCS Canada began operations in 2010 – was followed by the quietest first half in the service’s history,” the firm said in its report. “However, the results for 2013 may change based on future resurveys.”

Meanwhile, in the United States, PCS designated 20 catastrophe events for the first six months of 2014, just above the 10-year average of 18.6. Thirty-six states were affected by the events, with Texas hit hardest (losses of $1.8 billion).

Insured losses for the first half of the year reached $9.5 billion, while losses in the second quarter of the year were $6.5 billion, the lowest level since 2010, according to PCS. The 10-year annual loss average is $9.7 billion, it noted.

“For the first time since 2010, first-half U.S. catastrophe losses fell below $10 billion and reached their lowest level since 2009, which had losses of $7.8 billion,” PCS noted. “Frequency climbed 11% year-over-year from 18 to 20 events and reached its highest level since 2010.”

Personal losses accounted for 63% of activity in the first half of the year, followed by auto losses at 20% and commercial losses at 17%.