Palomar revises Q3 cat loss estimate to $17.5mn

Specialty property insurer Palomar Holdings has revised its Q3 pre-tax catastrophe loss estimate, net of reinsurance and prior period development, to $17.5 million.

The firm had previously stated an expected loss estimate of between $14.5 million and $15.5 million.

It was estimated that 70-75% of its gross losses from these two events were from its discontinued Admitted All Risk and Louisiana Specialty Homeowners products.

This newly revised figure represents anticipated losses from Hurricanes Ida and Nicholas as well as a full $5 million loss from an excess liability indemnity policy related to losses incurred by PG&E Corporation covered by Palomar Excess and Surplus Insurance Company (PESIC).

Palomar describes the PESIC policy as a high-attaching excess of loss liability policy that afforded coverage for liability associated with wildfire up to a maximum of $5 million.

The net impact of this loss, which was fully disclosed by PG&E Corporation on November 1, is expected to be $2.3 million for the quarter.