UK-based Caribbean-listed insurance investor estimates losses from hurricanes, earthquake between US$106m to $212m
Tuesday, October 10 2017 @ 07:35 PM AST
Contributed by: AleemKhan
Preliminary loss estimate, as at October 9, 2017
photo by Mark Yokoyama, flickr
Hurricanes Harvey, Irma and Maria and Mexican earthquakes – Lancashire Group Preliminary loss estimate, as at October 9, 2017 Lancashire Holdings Limited (the “Company” or “Lancashire”) announces today its range for its estimated net ultimate losses arising from hurricanes Harvey, Irma and Maria and the two recent earthquake loss events in Mexico.
The aggregate estimated net ultimate losses for these events is expected to be in a range of $106 million to $212 million after anticipated recoveries from its outwards reinsurance programme and the impact of outwards and inwards reinstatement premiums. This estimate falls well within the Company’s modelled loss ranges for these types of catastrophe events.
The loss estimate includes Lancashire’s exposures through its Bermuda, UK and Lloyd’s operations and in respect of the Company’s participation within the Kinesis third party capital facility. Lancashire has exposure to hurricane risk impacting the US and the Caribbean in the following classes: property retrocession, property direct and facultative, property reinsurance, cargo, marine and energy.
Lancashire’s preliminary estimates for the loss events noted have been derived from a combination of market data and assumptions, a limited number of provisional loss advices, limited client loss data and modelled loss projections. As additional information emerges, the Company’s actual ultimate loss may vary, perhaps materially, from the preliminary estimates announced. The final settlement of all claims is likely to take place over a considerable period of time.
Alex Maloney, Group Chief Executive Officer, commented: “The extensive news coverage turned our thoughts to those whose lives, livelihoods and businesses were devastated by these forces of nature. As we assess the financial impact of these losses for Lancashire, these events illustrate the value of our products to our clients. Lancashire’s combination of a strong balance sheet and market leading professional expertise allows us to service the current and future needs of our clients and their brokers and to meet the long term expectations of our investors and broader stakeholders.”
Lancashire expects to provide an update as part of its earnings release covering the Group’s financial statements for the third quarter due for release on 2 November 2017.
Lancashire, through its UK and Bermuda-based operating subsidiaries, is a global provider of specialty insurance and reinsurance products.