Global insurer Chubb has said that it expects to experience losses of up to $1.6 billion pre-tax ($1.28bn after tax) in the third-quarter of 2017 as a result of the impacts of hurricanes Harvey and Irma.
A number of insurers and reinsurers have now started to announce preliminary loss estimates for both hurricane Harvey and hurricane Irma, with Chubb being the latest.
The company has estimated that Harvey will result in a pre-tax loss of $650 million, or $520 million after tax, and, for Irma, the firm estimates a pre-tax hit of between $800 million and $900 million, or $640 million to $760 million after tax.
Chubb explains that the preliminary loss estimates for both events are net of reinsurance, and include reinstatement premiums and losses generated from its commercial and personal property and casualty operations, as well as its reinsurance business.
Commenting on the losses and impacts of the events, Chubb’s Chairman and Chief Executive Officer (CEO), Evan Greenberg, said; “The catastrophes we have experienced in the last five weeks, including Hurricanes Harvey, Irma and Maria, and the earthquakes in Mexico, have been significant events, causing both a tragic loss of life and considerable property and infrastructure damage.
“Our thoughts are with everyone affected by these disasters, including our customers, business partners and employees. Our first job at Chubb is to support them in their time of need and we are bringing to bear all of the resources of our organization to do that.”