XL estimates Q3 cat losses at $1.48bn
12 October 2017
Bermudian underwriting group XL has said it expected its third quarter figures will be impacted by $1.3 billion in net losses from the recent Hurricanes Harvey, Irma and Maria.
In total it said catastrophe losses for the quarter, which also includes smaller loss events, are estimated at approximately $1.48 billion, net of reinsurance.
XL’s CEO Mike McGavick said: "Our hearts break at the havoc caused by these events; the terrible pain and anguish suffered. We are proud of our people, some of whom have had their own losses to deal with, who are working tirelessly with our partners to help our clients in these difficult times.
“And, as ever, the problem of under insurance is again laid bare, afflicting especially those already less well off. It is appalling, and all of us with expertise to offer must bend our minds to solving these systemic failures.”
Mr McGavick said that while the claims were significant they were within the company’s models and that the size of the claims arising from the hurricane and the Mexican earthquake may well trigger a new approach on pricing across the industry.
“In terms of the effects on XL itself, given the specific nature of the events themselves our estimated losses are largely in line with our expectations, and our capital strength and talented teams ensure that we remain positioned to continue solving the risk needs of clients and brokers,” he explained.
“As for market conditions, risk awareness has changed due to these events, and this in turn should cause the market to move towards more realistic and sustainable pricing for the risks undertaken." re