Endurance estimates its share of $10bn global cat losses
Endurance Specialty Holdings has provided an initial estimate of $55.5 million net negative financial impact to the company in the second quarter of 2016 from the Fort McMurrary wildfires in Canada, the storms in Texas and Europe, and the Kumamoto earthquake in Japan, which have collectively generated approximately $10 billion in industry losses.
The net losses and loss expenses from the Q2 2016 catastrophe events were $73.6 million, reduced by $11.1 million because of net reinstatement premiums.
The estimated net negative financial impact of underwriting results of $62.5 million was reduced further by the net negative impact attributable to non-controlling interests of $7million, bringing the estimated net negative financial impact to Endurance at $55.5 million.
According to Endurance, the estimate is largely derived from a combination of its proprietary catastrophe modelling, standard industry models, a review of in-force contracts and preliminary indications from clients and brokers.
To date, reported claims as a result of these events have been limited; accordingly, the actual impact may ultimately differ materially from initial estimates.
