13 October 2017Insurance

Q3 cat losses to lead to price rises for London Market insurers

Catastrophe losses from the recent US hurricanes and Mexican earthquakes will lead to price rises on London Market insurers' loss-affected lines and could also affect wider market pricing trends, Fitch Ratings said in an Oct. 12 statement.

Total industry insured losses from the three major hurricanes, Harvey, Irma, and Maria, could be in the range of $75 billion to $120 billion, according to modelling firm RMS.

Fitch expects 2017 earnings of London Market insurers to be significantly reduced from 2016 due to catastrophe losses and the combined ratio for the Lloyd's market to be significantly above 100 percent. Considerable uncertainty remains around the size of the losses but some insurers have already announced their preliminary estimates.

Lloyd's of London estimated net claims from Harvey and Irma to be around $4.5 billion, while Beazley said the impact of the three hurricanes on 2017 earnings would be around $150 million, equivalent to around half of 2016 earnings.

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Everest Re faces $1.2bn in Q3 nat cat losses

Argo hires Hartford marine head to lead new US property unit

XL Group $1.5bn Q3 nat cat loss alleviates capital concerns: Morgan Stanley

Evacuation orders expand in California wildfires: AIR

DARAG appoints Italian CEO to expand core market

AXIS estimates Q3 nat cat hit at $0.6bn

XL parent XLIT outlook downgraded by S&P

Trump healthcare executive order effect on insurers limited

Arch Capital expects up to $345m nat cat hit in Q3

County Hall places reinsurance through Lloyd’s

Tokio Marine estimates NA nat cat losses at $0.6bn

US flood programme NFIP’s $16bn support no alternative to comprehensive reform

Oak Underwriting includes cyber in high-net-worth insurance

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk

More on this story

29 September 2017   The Lloyds loss disclosure of $4.5 billion from Hurricane’s Harvey and Irma leaves open a possibility for another large loss estimate for Maria, Credit Suisse analysts said in a Sept. 28 note.
29 September 2017   Specialist insurer Beazley said on Sept. 29 that it expects the aggregate net cost of the recent Atlantic hurricanes Harvey, Irma and Maria and the series of earthquakes in Mexico to cost the company between $175 million and $275 million.
28 November 2017   The sector outlook for London Market insurance remains negative for 2018, reflecting the expectation that underwriting results are likely to stay pressured despite anticipated improvements in pricing conditions, according to a Fitch Ratings report.