Canadian financial services holding company Great-West Lifeco Inc., a largely life and health insurance, as well as retirement, asset management and reinsurance focused business, has revealed that a $100 million provision has been set aside for potential losses from hurricane Ian, due to retrocessional exposure to the storm.
Great-West Lifeco underwrites some property catastrophe retrocessional coverage for reinsurance companies, which means the firm is exposed to major catastrophe and weather industry loss events.
The retrocession market has always featured some underwriters that are looking for a way to gain diversifying exposure to property catastrophe risks, including some life focused companies, as well as mutual insurers.
The global catastrophe retrocession market is one venue where these companies can access diversifying catastrophe risk, to augment their portfolio mix.
Today, Great-West Lifeco said that it will set aside a loss provision of US $100 million (roughly C $130 million after-tax or $0.14 per common share), for estimated reinsurance claims related to hurricane Ian.
The insurance group said that its Capital and Risk Solutions segment offers property catastrophe coverage to reinsurance companies, so effectively retrocessional cat cover, which is where this exposure to claims from major weather and other catastrophe loss events arises.
Great-West Lifeco said that the provision of $100 million has been set based on currently available data on hurricane Ian, so could be subject to change.
“Our thoughts are with the families, businesses, and communities that face the devastation wrought by Hurricane Ian,” commented Paul Mahon, President and Chief Executive Officer, Great-West Lifeco.
“The insurance industry has a vital role to play in financing the recovery and rebuilding activities that are now underway. Great-West Lifeco will continue to support our clients and partners in managing through this difficult situation.”