Branchville, N.J.-based Selective Insurance Group reported on Tuesday, Oct. 11, pre-tax catastrophe losses for the third quarter of around $70 million, or 20 points on the combined ratio.
The loss estimate is net of reinsurance recoveries and inclusive of reinstatement premium. The company said Hurricane Irene represented the majority of the catastrophe losses at $40 million (around $50 million on a gross basis) while the balance came from six additional events in the quarter as well as $11 million of prior period storm development.
“In my 31-year career, I have never encountered such a confluence of extreme weather events in one quarter. In a recent catastrophe bulletin, Property Claim Services, or PCS, provided a preliminary estimate of Hurricane Irene losses of $3.7 billion for the industry, including $2.1 billion in our top four premium states of New Jersey, Pennsylvania, New York and Maryland,” said Selective CEO Gregory Murphy.
Storms Highlight Need for Higher Pricing
“We believe this year’s unprecedented catastrophic weather activity is further evidence of the need for higher pricing,” said CEO Murphy.
“We continue to be a price leader achieving our 10th consecutive quarter of pure commercial lines price increases with 2.7 percent in the third quarter while also achieving personal lines price increases of 5.9 percent.”
Was this article valuable?
Here are more articles you may enjoy.