losses

Australia’s severe flooding that affected South-East Queensland and Northern New South Wales  in February and March 2022 is now counted as the third most costly extreme weather event ever recorded in the country, as the insurance and reinsurance industry loss estimate has been raised to AU $4.8 billion.

The insurance and reinsurance market industry loss estimate for the flooding that impacted eastern Australia earlier this year is rising considerably, with PERILS AG hiking its estimate by 23% to almost AU $4.9 billion (roughly US $3.5bn) on the back of extending the event loss period.

Based on an estimate of claims incurred, the Insurance Council of Australia now puts the 2022 severe flooding in the country as the fourth most costly natural disaster event on-record, at AU $4.3 billion.

Global reinsurance company Hannover Re has reported a loss-challenged start to the year, as natural catastrophes and other man-made events eroded its large loss budget, while the company also set a low triple-digit million euro reserve for potential losses from the war in Ukraine.

Based on actual claims costs, the Insurance Council of Australia has now updated its estimate for insured losses from Australia’s 2022 severe flooding to AU $3.35 billion.

France-headquartered global reinsurance company SCOR has said it expects the conflict in Ukraine and other natural catastrophe events will cause it to report a loss for the first-quarter of 2022, with a high double-digit million Euro charge expected to hit its results.

PERILS AG has this morning given a clearer picture of where we should anticipate the industry loss to insurance and reinsurance markets to settle after the eastern Australia flooding this year, putting its initial figure at close to AU $4 billion (close to US $3bn).

AXIS Capital, the Bermuda-based globally-active insurance and reinsurance company, has joined the catastrophe loss pre-announcements, saying that it expects a net and before tax hit of $250 million to its third-quarter results, the majority coming from hurricane Ida.

Global insurance and reinsurance firm Everest Re, which also operates a third-party capital strategy in the Mt. Logan Re collateralized reinsurance sidecar-like vehicle, has pre-announced an expectation of its third-quarter catastrophe losses amounting to $635 million net.

While it’s not essential to invest in the insurance-linked securities (ILS) asset class for decades to achieve expected returns, it is important that investors time their entry into the space, according to Morton Lane, President, Lane Financial LLC and Director, MSFE Program, The University of Illinois in Urbana-Champaign.