Reinsurance News

Chubb puts hurricane Maria loss at $220m, Mexico quakes at $25m

2nd October 2017 - Author: Steve Evans

Insurance and reinsurance firm Chubb has estimated that hurricane Maria will cost the company up to $220 million of pre-tax losses, while the two Mexico earthquakes add another $25 million to the third-quarter toll.

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Chubb has already announced an estimated pre-tax loss of $1.6 billion for hurricanes Harvey and Irma, in a third-quarter that is getting extremely costly for the insurance and reinsurance industry.

Today, Chubb estimated that its maximum net insurance and net reinsurance losses from Hurricane Maria would be $220 million pre-tax, or around $200 million after tax.

Chubb’s commercial and personal property and casualty insurance businesses is expected to take $152 million pre-tax, or $135 million after tax, of the loss. While its reinsurance businesses is expected to suffer a $53 million pre-tax and after tax loss.

All figures are net of reinsurance benefits and Chubb said that its estimated reinstatement premiums would cost a further $15 million pre-tax.

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Additionally, Chubb said that the two Mexico earthquakes would add another roughly $25 million pre-tax, or $24 million after tax, net of reinsurance and including reinstatement premiums.

Finally, Chubb also pre-announced that all other natural catastrophe insured losses in the third quarter would cost it around $107 million pre-tax, or $86 million after tax, again net of its reinsurance.

That puts the total Q3 catastrophe bill for Chubb, pre-tax but net of reinsurance, at just under $2 billion ($1.952bn), a significant bill for the insurer and it is likely that the companies reinsurers are also taking a significant share of the total impacts the insurer suffered.

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