4 October 2017Insurance

Zurich sees max $20m H2 hit to Farmers Re from catastrophes

Zurich Insurance Group said that Farmers Re faced a hit of no more than $20 million in the second half from catastrophes such as Hurricanes Irma and Harvey.

Farmers Insurance Group estimated overall gross losses from Hurricane Irma at $140 million which is expected to be fully recovered under the Exchanges reinsurance programs with no net impact to the Farmers exchanges. In addition, Farmers estimated gross losses from Hurricane Harvey in Texas at $500 million and losses net of reinsurance and tax of $140 million.

“Zurich is only indirectly exposed to Farmers’ underwriting results through the quota share treaty with Farmers Re,” the company said in an emailed statement.

“The eight percent quota share to Farmers Re includes a cap on overall losses from catastrophes of around $100 million on a 12-month basis. As a result of the losses incurred over the first half of the year the maximum potential loss to Farmers Re from catastrophes over the second half of the year is in the $10-20 million range.”

Zurich noted that it has no ownership interest in the Farmers Exchanges. Farmers Group provides certain non-claims administrative and management services to the Farmers Exchanges as its attorney-in-fact and receives fees for its services.

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

Willis launches DACH fac reinsurance hub with Mapfre hires

Insurtech PremFina raises $36m

Guy Carpenter taps Marsh exec to lead global innovation

US nat cat prices to increase 10% due to above average losses in 2017

Willis Towers Watson bolsters NA broking business with new roles

XL Catlin hires ocean marine insurance experts from CNA and Allianz

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 August 2017   Primary insurers will face the largest effect from Harvey, with regionally focused carriers most vulnerable given their geographic concentrations, Moody’s said in an Aug. 28 research note.
10 October 2017   Zurich Insurance has entered into a new long-term capacity deal with Harrogate-based specialist agricultural insurer Rural Insurance.