Insured losses from US hurricanes, Mexico quakes $95 bln

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Total insured market losses from hurricanes Harvey, Irma and Maria and two earthquakes in Mexico this year came to around 95 billion US dollars, reinsurance group Swiss Re announced Friday.

The Zurich-based company estimated its own pre-tax claims burdens from three hurricanes and two quakes at some 3.6 billion US dollars in the third quarter.

The world's second largest reinsurer based on assumed premiums cautioned that the estimates "are subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted as the claims assessment process continues."

"The most recent natural catastrophes have been extremely powerful," CEO Christian Mumenthaler said in a statement.

Hurricane Harvey battered Texas and parts of Louisiana in late August, causing severe damage to property and paralyzing the country's fourth-largest city, Houston, with major flooding.

In September, Hurricane Irma struck the Florida Keys archipelago and Hurricane Maria slammed into Puerto Rico.

Two powerful earthquakes hit Mexico in September, leaving hundreds dead.

"Swiss Re estimates the total insured market losses of the industry caused by these events to be approximately 95 billion US dollars," it said.

The group said that approximately 175 million US dollars of its own claims burden, which is net of retrocession and before tax, was related to the quakes.

Chief Financial Officer David Cole said: "Swiss Re maintains a very strong capital position and high financial flexibility to support our clients' needs, respond to market developments and execute on our capital management priorities" despite the challenges posed by recent events.

Another Swiss group, Zurich Insurance, said Thursday it expects to receive around 700 million US dollars in insurance claims net of tax related to hurricanes Harvey, Irma and Maria in the third quarter.

Sector number three Hannover Re said Thursday it expected premiums to rise in the wake of the recent spate of natural disasters as reinsurers underwrite large-scale liability risks, purchasing policies from multiple insurers to spread risk, share premiums and limit total potential losses.

Source(s): AFP