Global re/insurer Chubb has released an updated Q4 catastrophe loss estimate of $585 million ($505 million after tax), a figure which includes previously reported costs incurred by the California wildfires and hurricane Michael.
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.
Chubb had previously pegged losses in relation to these wildfires at $225 million pre-tax.
Meanwhile, Category 4 Michael made landfall in the Florida Panhandle on October 10 as the strongest tropical cyclone on record to strike the region and the fourth strongest hurricane to make landfall on the U.S mainland.
The company has said the combined loss estimate for both the wildfires and hurricane Michael stands at $475 million pre-tax.
Other worldwide weather events in the fourth quarter, including storms in Australia and typhoon Trami in Japan are estimated to have cost $75 million pre-tax.
The remaining $35 million is said to have originated from ‘loss development related to natural catastrophes occurring in the first three quarters of the year.’
Chubb says these 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 tax rate on catastrophe losses is impacted by the jurisdiction in which the losses are incurred.
For the quarter, Chubb has stated that the tax rate on the catastrophe losses is 13.7%. As a result, the company now expects the core operating effective tax rate for the quarter to be 1.5 to 2.0 percentage points above the high end of the previously announced range.