Bermuda's global insurers and reinsurers may fund 25% or more of nearly $100 billion in aggregate insured losses from hurricanes Harvey, Irma and Maria, according to preliminary estimates from the Association of Bermuda Insurers & Reinsurers.
Assurant Inc. expects to record pretax reportable cat losses from Harvey, Irma and Maria of $287 million to $293 million, or $187 million to $191 million after tax, in the third quarter.
Universal Insurance Holdings Inc.'s Universal Property & Casualty Insurance Co. expects gross losses related to Irma from Florida and other southeastern states to be $350 million to $450 million. American Platinum Property and Casualty Insurance Co. expects gross losses related to Irma of $1 million to $2 million.
Legal updates: The Oregon Department of Consumer and Business Services, Division of Financial Regulation, fined David Sanders, Albert DiPiero, and Zoom Health Plan Inc. affiliate Zoom Management Inc. $285,000 in civil penalties as part of an agreement to settle a lawsuit over a surplus note payment. Zoom Management will also pay Zoom Health Plan $2.1 million in cash that will be used to pay member claims and company liabilities.
Former Pittsburgh-based employees of Wells Fargo Insurance Services USA Inc. filed a motion in federal court to dismiss a lawsuit brought by the company alleging breach of an agreement not to solicit Wells Fargo clients, Business Insurance reported. Wells Fargo has accused the defendants of taking business away from its clients and moving to EPIC Insurance Brokers & Consultants. In response, the defendants filed a motion to reject the suit arguing Wells Fargo did not have the right to enforce the terms of the individual defendants' restrictive covenants after it agreed to sell Wells Fargo Insurance Services USA to USI Insurance Services LLC.
Continued favorable development of reserves for prior accident years may offer a partial offset to the likely elevated level of underwriting losses the U.S. property and casualty industry will incur from the current, catastrophe-riddled calendar year, according to an S&P Global Market Intelligence report.
New York Financial Services Superintendent Maria Vullo has finalized a regulation to limit the amount insurers can reimburse for healthcare services executed outside of New York State under its no-fault insurance law.
In capital offerings, Enstar Group Ltd. filed an automatic shelf registration statement for the sale by selling shareholders of 8,205,979 ordinary shares.
Farmers Insurance Exchange priced an offering of $400 million of surplus notes.
In people news, Molina Healthcare Inc.'s board named Joseph Zubretsky president and CEO, effective Nov. 6. Zubretsky most recently served as president and CEO for Hanover Insurance Group Inc.
Meanwhile at Hanover, John Roche will succeed Zubretsky as president and CEO, effective Nov. 4.
Gottlieb addresses speculation over HHS job; China to accept overseas trial data: Scott Gottlieb said he could best serve the administration by staying with the U.S. FDA; and the China Food and Drug Administration will start accepting clinical data from overseas trials for drugs with immediate effect.
Financial news in other parts of the world
Asia-Pacific: Reliance Nippon Life wins IPO approval; Australia to amend draft banking bill
Europe: Capital rules compromise; Santander ups ROE target; Italy bad loans decrease
Middle East & Africa: Shakeup in Kenyan election re-run; Ethiopian central bank hikes rate
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng fell 0.36% to 28,389.57, and the Nikkei 225 was up 0.28% to 20,881.27.
In Europe, as of midday, the FTSE 100 was nearly unchanged at 7,538.05, and the Euronext 100 had grown 0.02% to 1,046.13.
On the macro front
The Bank Reserve Settlement report, the MBA mortgage applications report, the JOLTS report and the FOMC minutes are due out today.