Everest Re Group Ltd. estimates it will incur $100 million of catastrophe losses, net of reinsurance recoverables and reinstatement premiums, in the first quarter of 2018, largely arising from the California wildfires and related events.
Everest said its original loss estimates for California’s fourth quarter wildfires were based on the best available information at the time, including modeled data, preliminary client discussions and industry loss estimates, which ranged from $8 billion to $10 billion.
However, Everest said, industry loss estimates for both the Northern and Southern California events “have risen dramatically since year-end and are now projected at over $13 billion.”
“This increase in the industry loss estimate is consistent with the revised reports of escalated claims costs we have noted with several of our clients, prompting the change in the company’s estimate in the quarter,” the company continued.
Source: Everest Re Group
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