AmTrust Financial Services Inc. has estimated its net loss exposure for third-quarter catastrophe activity at $40 million to $65 million.
AmTrust's excess of loss reinsurance programs as of July 1 provide catastrophe coverage for losses in excess of $20 million, with a per-event limit of $830 million. AmTrust had also entered into a quota share reinsurance contract effective Aug. 1 to further lower its net exposure to catastrophe and noncatastrophe events related to the business of its Republic Cos. Inc. unit. The quota share contract has a cession rate of 62.5% covering Republic's personal property policies.
Most of AmTrust's estimated losses from hurricanes Harvey, Irma and Maria and the earthquake in Mexico were related to contracts bound by AmTrust at Lloyd's, which has multi-event catastrophe coverage for losses in excess of $10 million per event.