Selective Insurance Group has now confirmed the size of the reinsurance recovery it will benefit from, to help in paying claims from December’s winter storm Elliott in the United States.
Just over one week ago, Selective pre-announced its fourth-quarter 2022 catastrophe losses as expected to be close to $45.7 million, net and before tax.
The insurer also disclosed at the time it was expecting to make a reinsurance recovery under its excess-of-loss treaty following heavy claims from the winter storm and polar freeze event.
Now, Selective has disclosed its gross losses, providing an insight into the quantum of reinsurance recovery it is making.
Selective said in reporting its full quarterly results that, Winter Storm Elliott impacted 37 US states, 26 of which are in the insurer’s standard lines footprint.
As a result of the claims it has received, Selective said that it has recorded $135 million in ultimate gross losses from Winter Storm Elliott.
That gross loss drops to $46.1 million, net of reinsurance, implying that Selective has recovered around $89 million from its excess-of-loss catastrophe reinsurance treaty.
Because of the reinsurance recovery made, Selective also said that it has incurred $11.7 million in ceded earned reinstatement premium, related to Winter Storm Elliott.
As a result of which, the total negative impact from Winter Storm Elliott to Selective’s fourth quarter 2022 underwriting results was $57.8 million, pre-tax, while the severe winter weather event added 6.5 points to the Q4 combined ratio as well.
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