The market is looking at losses caused by hurricanes Harvey, Irma and Maria (above)  of up to $95bn.

The market is looking at losses caused by hurricanes Harvey, Irma and Maria (above)  of up to $95bn.

Scor predicts $95bn market cost of recent cats

09 October 2017

French reinsurance group Scor has predicted this morning (9 October) that the market is facing $95bn in losses from the combined losses caused by hurricanes Harvey Irma & Maria and the Mexican earthquakes.

The reinsurer said its net, pre-tax share to be EUR430mn.

At the Monte Carlo Rendez-Vous last month, Reinsurance Magazine revealed that the group's losses from Irma could have been significantly highly had it not presciently cut back its Florida windstorm exposures at the 1.7 renewals two months earlier.

“This estimate is based on an analysis of the Group's exposures, the current assumption of total insured losses, and preliminary information received from certain cedants to date,” said Scor. “Given the nature, magnitude and very recent occurrence of these events, and the limited claims information received to date, there remains a material degree of uncertainty regarding this estimate.”

It added that “at this stage” the Group's solvency position “remains strong” and in the upper half of the optimal solvency range, the dividend policy remains unchanged and the share buyback program is maintained.

Scor said it was still able to confirm the targets set in its  "Vision in Action” strategy, and does not expect its financial ratings to be affected. It described the likelihood of its need to trigger its Contingent Capital facility this year as “extremely remote”.

Scor's market wide loss estimates echo those of RMS which is currently forecasting industry losses from Harvey and Irma of up to $80bn and $15-30bn of losses from Hurricane Maria. re