Insurance giant Zurich has pegged its group loss from hurricanes Harvey, Irma and Maria, as well as other smaller loss events in the third-quarter as $717 million after reinsurance and before tax, with the majority falling to the property and casualty (P&C) business unit.
Zurich’s P&C unit experienced $700 million of the loss, for the three major hurricane impacts and certain smaller losses, net of reinsurance and before tax. After tax the total is expected to fall to $620 million.
Zurich’s subsidiary reinsurer Farmers Re is expected to suffer an additional $17 million loss from the third-quarter loss activity.
“While significant, these events have demonstrated the effectiveness of our underwriting and the improvements made in our reinsurance programs over the past year, which have ensured that the overall losses remain well within our overall risk tolerance,” commented Group Chief Executive Officer Mario Greco.
Zurich also said that it does not expect to have to pay any reinstatement costs for its reinsurance coverage because of the third-quarter catastrophe loss events.
Zurich is almost certaint to have collateralized participation in its reinsurance program from ILS funds, hence the capital markets will pay its share of the insurers loss experience.