13 October 2017Insurance

Q3 cat losses to lead to price rises for London Market insurers

Catastrophe losses from the recent US hurricanes and Mexican earthquakes will lead to price rises on London Market insurers' loss-affected lines and could also affect wider market pricing trends, Fitch Ratings said in an Oct. 12 statement.

Total industry insured losses from the three major hurricanes, Harvey, Irma, and Maria, could be in the range of $75 billion to $120 billion, according to modelling firm RMS.

Fitch expects 2017 earnings of London Market insurers to be significantly reduced from 2016 due to catastrophe losses and the combined ratio for the Lloyd's market to be significantly above 100 percent. Considerable uncertainty remains around the size of the losses but some insurers have already announced their preliminary estimates.

Lloyd's of London estimated net claims from Harvey and Irma to be around $4.5 billion, while Beazley said the impact of the three hurricanes on 2017 earnings would be around $150 million, equivalent to around half of 2016 earnings.

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More on this story

Insurance
28 November 2017   The sector outlook for London Market insurance remains negative for 2018, reflecting the expectation that underwriting results are likely to stay pressured despite anticipated improvements in pricing conditions, according to a Fitch Ratings report.
Insurance
29 September 2017   The Lloyds loss disclosure of $4.5 billion from Hurricane’s Harvey and Irma leaves open a possibility for another large loss estimate for Maria, Credit Suisse analysts said in a Sept. 28 note.
Insurance
29 September 2017   Specialist insurer Beazley said on Sept. 29 that it expects the aggregate net cost of the recent Atlantic hurricanes Harvey, Irma and Maria and the series of earthquakes in Mexico to cost the company between $175 million and $275 million.