Everest Re faces $1.2bn in Q3 nat cat losses
Bermuda-based Everest Re said on Oct. 12 that it expects to incur pre-tax catastrophe losses, net of reinsurance and reinstatement premiums of $1.2 billion in the third quarter.
After taxes, the net economic impact is estimated at $900 million. The calculation includes losses from Hurricanes Harvey, Irma, and Maria, as well as from the earthquake events in Mexico.
Losses are arising from both the reinsurance and insurance segments. The company’s view of its losses from the events assumes an aggregate industry loss in the range of $100 billion for the third quarter.
Everest Re noted that it is the reinsurance industry’s leading sponsor of catastrophe bonds, through the Kilimanjaro Re series, with $2.8 billion of multi-year collateralized capacity for specific perils as well as aggregate protection for losses arising from named territories, including Texas, Florida, and Puerto Rico.
In addition, Everest’s capital market facility, Mt. Logan Re, maintains close to $1 billion of assets under management that further supports the company’s catastrophe exposures. These alternative capital structures, placed alongside a number of additional protections, including traditional reinsurance and retrocession coverage has provided protection against the recent catastrophe events, according to the company statement.
“Our robust balance sheet and strong risk management programme provide assurance to our clients that Everest will deliver when it matters most,” said Everest Re CEO Dom Addesso.
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