Ohio-based property and casualty (P&C) insurer State Auto Financial Corporation has estimated that it incurred catastrophe losses of between $80 million and $82 million during the first quarter of 2021.
The estimate includes $66 million of net catastrophe losses from winter storms Uri and Viola, a significant portion of which related to the State of Texas.
State Auto specified that its Q1 loss figures include reinsurance reinstatement premiums.
The company expects to release its full first quarter 2021 results on Thursday, May 6, 2021, before the open of regular trading on the Nasdaq Stock Market.
Analysts have warned that the unprecedented level of industry losses caused by February’s Winter Storm Uri in the US could be “setting the stage” for another above-average catastrophe year for re/insurers.
Uri caused significant disruption across a number of southern U.S. states earlier this year, especially Texas, which saw record-low temperatures and experienced several inches of snow.
Karen Clark & Company (KCC) has put its insurance and reinsurance industry loss for U.S. winter storm Uri at $18 billion, while AIR Worldwide believes that the event was likely to drive insured losses of more than $10 billion.
Analysts at KBW expect losses from Winter Storm Uri to be managebale, but noted that they are likely to help sustain property catastrophe reinsurance rate increases through the mid-year renewals period.
S&P agreed that carriers should be able to comfortably absorb the shock due to their robust capital levels and reinsurance protection.
