Global insurance and reinsurance group Everest Re has pre-announced an estimated $730 million of catastrophe losses for the third-quarter of 2022, $600 million of which are related to hurricane Ian.
For hurricane Ian, Everest Re said that its loss estimate is based on an insurance industry-wide loss pick of approximately $55 billion, which the company says is partly driven by the significant social inflation in Florida.
On other Q3 2022 catastrophe events, which drove the other $130 million of losses, Everest Re said it bases its estimate on a industry loss pick of $15 billion.
Making for a $70 billion quarter, which is a heavy toll for the global insurance and reinsurance industry.
Everest Re’s estimates are given pre-tax and net of any retrocessional or reinsurance recoveries.
The company split the losses by its main business segments, with the reinsurance division taking $620 million, %500 million of which is from hurricane Ian.
Meanwhile, the Everest Insurance division took $110 million of catastrophe losses in Q3, $100 million of which is related to hurricane Ian.
“Our thoughts are with those impacted by the severe weather events across the globe. We are dedicated to supporting our customers in their time of need,” Juan C. Andrade, President and CEO of Everest Re Group commented.
“Hurricane Ian is likely to be the second largest hurricane driven industry loss in U.S. history. Everest’s focused execution of its diversification strategy combined with our underwriting discipline, has mitigated our total exposure to approximately 1% of our currently estimated Hurricane Ian industry loss with our reinsurance division expected to be less than 1%.”
