Global insurer and reinsurer Chubb has estimated that it will incur roughly $225 million pre-tax ($195 million after tax) of catastrophe losses attributable to the California wildfires over the fourth quarter of 2018.
This estimate does not include losses from other global weather and catastrophe events over Q4, such as Hurricane Michael, which is estimated to have caused additional losses in the range of $150 million to $250 million pre-tax for the re/insurer.
Chubb explained that its loss estimates are net of reinsurance, include reinstatement premiums and comprise losses generated from the company’s commercial and personal property and casualty insurance businesses as well as its reinsurance operations.
The Camp and Woolsey Wildfires destroyed more than 20,000 structures between them after springing up in California’s Butte and Ventura counties, respectively, on November 8.
They burnt through a combined total of 250,000 acres last month, and the Camp Wildfire became the deadliest on record after claiming at least 85 lives.
Recent estimates from Moody’s suggest that insured losses from both wildfires will be between $10 billion and $15 billion, while RMS said $9 billion to $13 billion, and CoreLogic put economic losses at $15 billion to $19 billion.
AIR Worldwide also put insured losses for just the Woolsey Fire at $2.5 billion, although property data provider BuildFax suggested that Camp Fire estimates may prove inaccurate due to a recent increase in property maintenance and construction activity across Butte County.
Chubb’s announcement also follows estimates from Los Angeles based multi-line insurer Mercury General, who said that its reinsurance partners would likely shoulder around $216 million of its $253 million wildfire losses.
Chubb incurred total natural catastrophe losses of $450 million pre-tax ($372 million after tax) over the third quarter of 2018, but still managed to post a core operating profit of $1.1 billion, compared with a $60 million loss for the same period in 2017.
