Everest Re, the global insurance and reinsurance underwriter, has announced an estimated $600 million of pre-tax and net losses from hurricane Ian, while its total third-quarter 2022 catastrophe loss burden is pegged at $730 million, including global events.
The company has reported its $730 million of Q3 catastrophe losses net of any retrocessional or reinsurance recoveries.
As a result, we can assume this is after any losses have been shared with third-party investors within the Everest Re third-party capital vehicle, Mt. Logan Re Ltd.
With hurricane Ian, Everest Re has estimated its $600 million share of the market’s losses, using an industry loss estimate of $55 billion.
The company said this in part is driven by “the significant social inflation in Florida.”
Hurricane Ian’s losses are split as $500 million for the Everest Re reinsurance division and $100 million for its insurance arm.
Other global catastrophe losses from Q3 are estimated at $130 million and this is based on an industry estimate of $15 billion for those additional cat events.
The additional catastrophe losses are split $120 million for the Everest Re reinsurance segment and $10 million in insurance.
It’s impossible to know how much of the gross loss Everest Re will have shared with its third-party capital partners in Mt. Logan Re, but safe to assume the sidecar-like structure at least support the company in paying some of its claims from hurricane Ian and perhaps other global events.
“Our thoughts are with those impacted by the severe weather events across the globe. We are dedicated to supporting our customers in their time of need,” Juan C. Andrade, President and CEO of Everest Re Group said. “Hurricane Ian is likely to be the second largest hurricane driven industry loss in U.S. history. Everest’s focused execution of its diversification strategy combined with our underwriting discipline, has mitigated our total exposure to approximately 1% of our currently estimated Hurricane Ian industry loss with our reinsurance division expected to be less than 1%.”