AmTrust Financial Services revealed an estimated third quarter 2017 catastrophe activity net loss exposure of between $40 and $65 million.
Most of AmTrust’s losses from Hurricanes Irma, Harvey, and Maria and the recent Mexico earthquake were related to contracts bound by AmTrust at Lloyd’s, which has multi-event catastrophe cover for losses over $10 million per event.
From July 1st, 2017, the carrier’s excess of loss reinsurance programmes provided catastrophe cover for losses over $20 million, with an $830 million per event limit.
To further reduce its net catastrophe and non-catastrophe exposures of its Republic subsidiary, AmTrust entered a new quota share reinsurance contract effective from August 1st, 2017, with a 62.5% cession rate covering Republic’s personal property policies.
Barry Zyskind, Chairman and Chief Executive Officer, AmTrust, said in a statement; “At this time, our thoughts and prayers are with all those rebuilding after these recent catastrophes. Although property represents a small portion of our overall portfolio, AmTrust had exposure to the recent events in the United States, Caribbean and Mexico either through Republic or our operations at Lloyd’s of London.
“Our net exposure to these events is limited given our reinsurance and quota share programmes and the Company’s limited appetite for catastrophe risk. We are working diligently to process all claims as quickly as possible and meet our obligations to our policyholders and are also giving back to the communities we serve to support the rebuilding efforts.”
As carriers reveal their results for what’s been a third quarter with above average industry losses after the series of high-insurance density hurricanes and earthquake events, the vital role of reinsurance in protecting balance sheets is coming increasingly to the fore, and firms are working to decrease their net catastrophe exposures with the purchase of further cover.
