Major insurer XL Group is expecting about US$245 million (over NZ$350 million) in losses incurred from natural catastrophes during the fourth quarter of 2016.
The company’s preliminary estimate is split approximately US$125 million in the insurance segment and US$120 million in the reinsurance segment. The total amount is before tax and net of reinsurance and reinstatement premiums.
Losses contributing to the overall estimate include around US$130 million in net losses from Hurricane Matthew, which hit the US and the Caribbean.
Also included in the estimate is the US$75 million in net losses from the magnitude 7.8 New Zealand earthquake in November.
The remaining catastrophe losses were the result of a number of smaller events during the fourth quarter and the rest of 2016.
XL Group said it may revise the estimates, which could substantially differ from the actual losses. The insurer will announce its fourth quarter and full 2016 results on February 1.
In October, XL Group announced an operating net income of US$122.5 million for the third quarter of 2016 and P&C underwriting profit of US$167 million.
Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums increased to US$97.4 million from US$30.8 million in the same quarter in 2015.
Integration costs related to the XL Group’s merger with the Catlin Group amounted to about US$54.5 million in the third quarter.
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