Everest Re has preannounced cat losses of $695mn from Q4 events that are equivalent to 8.3 percent of its shareholders’ equity of $8.3bn as at the end of the third quarter of 2018.
The Q4 cat loss estimate includes the impact of Hurricane Michael, California wildfires and the December hailstorm event in Australia.
The Bermuda-based (re)insurer said its loss picks, which are net of reinsurance, reinstatement premiums and taxes, tallied to industry losses from the events that it predicted could approach $30bn.
The lion’s share of Everest Re’s losses have arisen in its reinsurance operations, the company disclosed.
Commenting on the losses, the company’s president and CEO Dom Addesso said: “These losses reflect another year in which there has been an extraordinary level of industry catastrophes and are reflective of our market share.”
Everest Re’s is the latest in a string of preannouncements from (re)insurers as the Q4 earnings season gets into full swing.
Last Friday Chubb said it expects to suffer catastrophe losses of $585mn before tax in its Q4 results driven by the Californian wildfires and Hurricane Michael, which accounted for $475mn of the total.
Last month The Hartford made an early preannouncement when it forecast a loss bill of up to $365mn for the fourth quarter, again driven by the Camp and Woolsey California fires and Hurricane Michael.
Also in December, AIG said at that stage it expected to incur a cat bill in the region of $750mn to $800mn on a pre-tax basis in its fourth quarter results.
Other preannouncements this month included Argo, The Hanover and Kemper.