U.S. insurer The Hartford is the latest to pre-announced the impacts of natural catastrophes and severe weather in the first-quarter of 2021, saying it expects to report $214 million of current accident year cat losses, net of reinsurance.
The insurer explained that this is an estimate and so subject to change, but the pre-tax figure reflects a relatively significant exposure to events in Q1, particularly to the freezing weather in Texas and surrounds.
The winter storms and freezing weather that impacted the United States in February is the major contributor to catastrophe losses for the first-quarter, for The Hartford.
The insurer said that it expects that, after reinsurance and before tax, the February winter storms in Texas and other areas are expected to contribute $176 million of losses to its first-quarter results.
So that’s 82% of the insurers total catastrophe losses coming from the winter weather, reflecting its strong market share across regions affected.
The company doesn’t detail what other catastrophe events drove the additional losses, to take its total Q1 catastrophe hit to $214 million.
The Hartford also revealed that it will recognise $225 million, before tax, of unfavourable prior year reserve development in Q1, which is largely related to a settlement reached with the Boy Scouts of America (BSA) organisation related to sexual abuse claims associated with insurance policies mostly issued in the 1970’s.
As a reminder, The Hartford has been the recent subject of a takeover approach from rival Chubb, although rejected the offer saying it did not deem an acquisition as in the best interests of the company and its shareholders.