Everest Re Group Ltd. and AXIS Capital announced their preliminary third quarter 2021 catastrophe losses.
In advance of its full quarterly earnings to be released on Oct. 27, 2021, Everest is estimating total Q3 pre-tax net catastrophe losses of $635 million, net of recoveries and reinstatement premiums.
Hurricane Ida is estimated to cost $415 million, divided into $335 million for its reinsurance segment and $80 million for its insurance segment. (For Ida, Everest estimates overall insured industry losses of approximately $28 billion-$30 billion).
Everest further estimated that the European floods in July will cost its reinsurance segment $220 million, with no claims for its insurance segment. (For these floods, Everest projected overall insured industry losses of approximately $12 billion).
In a separate announcement, AXIS Capital Holdings issued a third quarter pre-tax net-loss estimate for catastrophes and other weather-related events of approximately $250 million ($219 million, after tax).
The pre-tax net loss estimate includes $175 million for Hurricane Ida and $55 million for the July European floods. AXIS said these claims are consistent with industry insured losses for Ida of approximately $35 billion and industry insured losses of approximately $13 billion for the floods.
In addition, AXIS said its pre-tax net loss estimate includes $20 million for other catastrophe and weather-related events.
AXIS Capital commented that it is seeing continued improvements in its current accident year combined ratio, excluding catastrophe and weather-related losses, which is consistent with progress observed in the first half of 2021.
Both Bermuda-based companies noted that there remain significant uncertainties around the ultimate number of claims and scope of damage resulting from these events.
Source: Everest Re and AXIS Capital
Photograph: Houses and cars in the Ahr valley in the Walporzheim district are destroyed in Bad Neuenahr-Ahrweiler, Germany, on Saturday, July 17, 2021. Photo credit: Thomas Frey/dpa via AP.
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