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Tokio Marine Holdings estimates up to ¥65B of cat losses

Tokio Marine Holdings Inc. said it expects estimated pretax incurred losses, net of reinsurance, of approximately ¥65 billion in the aggregate due to hurricanes Harvey, Irma and Maria and the earthquakes in Mexico in August and September.

The company expects pretax estimated losses of ¥21 billion from Hurricane Harvey, ¥32 billion from Hurricane Irma and ¥9 billion from Hurricane Maria. Meanwhile, losses attributable to the Mexico quakes are estimated to be about ¥3 billion.

The company said the estimates are based on information available as of Oct. 12, adding that its actual losses could materially differ from the preliminary estimates. Further, the company said the losses will have a minor impact on its financial soundness.

In a note to investors, Keefe Bruyette & Woods Inc. said it lowered its estimate for Tokio Marine Holdings' net profit for the fiscal year ending March 31, 2018, by ¥24 billion to ¥270 billion to allow for the overshoot on international catastrophe losses. The equity research firm cut fiscal-year EPS estimate for the insurer to ¥360.7 from ¥392.1.

Tokio Marine Holdings' announcement came days after another Japanese insurer, MS&AD Insurance Group Holdings Inc., said it expects to record pretax catastrophe losses of ¥70 billion to ¥110 billion from the hurricanes in North America and the Caribbean and earthquakes in Mexico.

As of Oct. 12, US$1 was equivalent to ¥112.30.