National General has revealed an expected $63 – $65 million pre-tax impact to 2017 fourth quarter results from the fires that ravaged Northern and Southern California.
The estimated losses are net of reinsurance recoverables and including reinstatement premiums, and at $53 million pre-tax the firm’s total losses from the fire are roughly in line with previous pre-tax estimates in the $40-45 million range excluding reinstatement costs.
Total losses from the December Southern California fires are expected at about $10-12 million pre-tax (net of quota share reinsurance recoverables).
In addition to the impact from the California fires, National General anticipates a further $20-30 million after-tax from a one-time non-cash tax charge due to the reduction in the corporate tax rate that will lead to a revaluation of the firm’s deferred tax assets.
However, National General added that it expects its future after-tax earnings to be positively impacted by the recently implemented tax regime.