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SCOR, Lancashire unveil estimated losses from hurricanes, Mexico earthquakes

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SCOR, Lancashire unveil estimated losses from hurricanes, Mexico earthquakes

SCOR SE and Lancashire Holdings Ltd. announced their preliminary loss estimates from Hurricanes Harvey, Irma and Maria — which largely affected parts of the Caribbean and the U.S. — as well as the recent earthquakes that hit Mexico.

SCOR estimated that the total private insured market loss for the combined hurricanes and earthquakes will reach about $95 billion, adding that it expects to incur costs related to the natural catastrophes of about €430 million, net of retrocession and tax, for the third quarter.

The French reinsurer noted that a "material degree of uncertainty" remains regarding the estimated cost, but reiterated that the group's solvency position "remains strong and in the upper half of the optimal solvency range."

Meanwhile, U.K.-based Lancashire Holdings estimated its net ultimate losses arising from the catastrophes to be in the range of $106 million to $212 million, after anticipated recoveries from its outward reinsurance program and the impact of outward and inward reinstatement premiums. The company said the estimate, which includes exposures through its Bermuda, U.K. and Lloyd's of London operations, falls "well within" its modeled loss ranges for such types of catastrophe events.

Lancashire noted that its actual ultimate loss may significantly vary from the current estimate as more information emerges, with final settlement of all claims expected to take place "over a considerable period of time."

An update regarding the group's estimate is expected to be included in its third-quarter financial statements, set to be released Nov. 2.