Zurich expects $700m Q3 nat cat impact

Multi-line insurer Zurich Insurance group said on Oct. 19 that it expects aggregate claims in the third quarter of 2017 related to hurricanes Harvey, Irma and Maria, for the group’s property & casualty business, to be approximately $700 million net of reinsurance and before tax.

After tax, the losses are forecast to be around $620 million. The group does not expect to incur any reinstatement costs for reinsurance in relation to the third-quarter events.

In addition, the third quarter also saw a number of other smaller events, while Farmers Re is expected to incur a loss in relation to the three hurricanes of $17 million net of reinsurance and before tax.

The losses are not expected to have a material impact on the group’s overall financial strength and capital flexibility, according to the statement.

“While significant, these events have demonstrated the effectiveness of our underwriting and the improvements made in our reinsurance programs over the past year, which have ensured that the overall losses remain well within our overall risk tolerance,” said group CEO Mario Greco. “Our thoughts and best wishes go out to those affected by these tragic events.”

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