Validus faces $0.4bn nat cat loss in Q3

Bermuda-based Validus Holdings said on Oct. 9 that it expects to record losses from third quarter natural catastrophes in the amount of $378.9 million.

Hurricane Harvey is set to contribute $146.4 million to the total losses, Irma is coming in at $163.2 million and Maria is expected at $57.7 million. The Mexico City earthquake is expected to cost $11.6 million.

Ed Noonan, Validus’ chairman and chief executive officer, stated: “A key part of what we do is to help people recover from the financial impact of catastrophes. We will pay significant amounts in this regard, and it is a moment in which I am proud of the role that our company and our industry performs for communities all over the world. Validus is a strong company, and we are very prudent in our risk management.

"As we look to the rest of the year we continue to be well positioned with significant retrocessional and reinsurance protection in place. While these events will affect each of our businesses, our financial position allows us to sustain these events with no disruption.”

Validus Re is focused primarily on treaty reinsurance. The group includes specialty insurer Talbot at Lloyd’s operating through Syndicate 1183. US specialty lines group Western World focuses on excess and surplus lines. AlphaCat is a Bermuda based investment advisor managing capital for third parties and Validus in insurance linked securities and other property catastrophe and specialty reinsurance investments.

As part of the loss evaluation process, Validus has estimated the industry losses from the nat cat events, excluding losses to the National Flood Insurance Program (NFIP), as follows: Hurricane Harvey $20 - $30 billion, Hurricane Irma $25 - $40 billion, Hurricane Maria $25 - $45 billion and Mexico City Earthquake $2 - $4 billion.

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

AIG expects up to $3.1bn cat loss for Q3

TigerRisk hires Swiss Re exec to head reinsurance unit

Car insurance premiums see biggest quarterly drop for three years in UK

BIBA to focus on insurtech in 2018

Don't miss our insurtech email newsletter - sign up today