Chubb pegs Q4 2018 nat cat loss at $585m
Property/casualty insurer Chubb has estimated its global net catastrophe losses of approximately $585 million pre-tax, or $505 million after tax, in the fourth quarter of 2018.
The insurer said these estimates include the previously reported loss estimates related to the California wildfires and Hurricane Michael, which totaled $475 million pre-tax, and $75 million pre-tax related to other worldwide weather events in the fourth quarter, including storms in Australia and Typhoon Trami in Japan.
The balance of approximately $35 million pre-tax is from loss development related to natural catastrophes occurring in the first three quarters of the year.
These estimates are net of reinsurance, include reinstatement premiums and comprise losses generated from the company's commercial and personal property and casualty insurance businesses as well as its reinsurance operations.
The tax rate on catastrophe losses is impacted by the jurisdiction in which the losses are incurred. For the quarter, the tax rate on the catastrophe losses is 13.7 percent. As a result, the company now expects the core operating effective tax rate for the quarter to be 1.5 to 2.0 percentage points above the high end of the previously announced range.
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