Markel estimates California wildfire losses at up to $80m
Specialty insurer Markel said in its third-quarter 2017 results report that after the end of the reported period northern California sustained losses from several wildfires, which the company estimates to result in net incurred losses of between $40 million and $80 million before income taxes.
Multiple wildfires exacerbated by hot, dry, and windy conditions spread across eight counties of California starting in early October.
The estimated range of losses was derived based on preliminary industry loss estimates, policy level reviews and direct contact with insureds and brokers. However, the company is still gathering loss data from policy holders and cedants and does not expect that all losses have been reported at this time. Potential losses associated with business interruption are also not yet clear. The Company continues to closely monitor reported claims to refine its estimate of losses, which will be recorded in the fourth quarter of 2017. Markel also noted that the wildfire events are ongoing.
Total insured losses from the Tubbs, Pocket, Nuns, Atlas, Redwood, and Sulphur fires in California will be between $2 billion and $3 billion, according to estimates by catastrophe modelling firm AIR Worldwide.
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