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XL Group estimates Q3 pretax catastrophe losses at $1.48B

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XL Group estimates Q3 pretax catastrophe losses at $1.48B

XL Group Ltd has provided preliminary estimates of net losses from hurricanes Harvey, Irma and Maria of $1.33 billion.

Third-quarter total catastrophe losses, which include smaller loss events, are preliminarily estimated at about $1.48 billion, pretax and net of reinsurance, reinstatement and adjustment premiums, and redeemable noncontrolling interest. On an after-tax basis, the company expects total catastrophe net losses in the third quarter of about $1.35 billion.

Hurricanes Harvey, Irma and Maria contributed about 25%, 40% and 25%, respectively, to XL Group's loss estimates, with 10% related to all other events during the third quarter, mostly the earthquakes in Mexico and Typhoon Hato. The estimated losses are split roughly evenly between the insurance and reinsurance segments. The company said it continues to have "significant" catastrophe reinsurance protections remaining for 2017 and 2018, including catastrophe bond protections, some of which extend through 2019.

XL CEO Michael McGavick said in a news release that the estimated losses are in line with the company's expectations.

"As for market conditions, risk awareness has changed due to these events, and this in turn should cause the market to move toward more realistic and sustainable pricing for the risks undertaken," he said.