AmTrust expects up to $65 million cat losses in Q3
Specialty property/casualty insurer AmTrust Financial Services said on Oct. 3 that it expects net losses for the third quarter of 2017 from natural catastrophes of between $40 million and $65 million.
AmTrust noted that its excess of loss reinsurance programmes as of July 1, 2017, provide catastrophe coverage for losses in excess of $20 million, with a per event limit of $830 million.
AmTrust had entered a new quota share reinsurance contract effective August 1, 2017, to further reduce net exposure to catastrophe and non-catastrophe events related to the business of its Republic Companies subsidiary. The quota share contract has a cession rate of 62.5 percent covering the personal property policies of Republic.
The majority of AmTrust’s estimated losses from Hurricane Harvey, Hurricane Irma, Hurricane Maria and the recent earthquake in Mexico were related to contracts bound by AmTrust at Lloyd’s, which has multi-event catastrophe coverage for losses in excess of $10 million per event.
“Although property represents a small portion of our overall portfolio, AmTrust had exposure to the recent events in the United States, Caribbean and Mexico either through Republic or our operations at Lloyd’s of London,” said Barry Zyskind, CEO of AmTrust.
“Our net exposure to these events is limited given our reinsurance and quota share programs and the Company’s limited appetite for catastrophe risk. We are working diligently to process all claims as quickly as possible and meet our obligations to our policyholders and are also giving back to the communities we serve to support the rebuilding efforts.”
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