XL Group reveals ERM management changes
XL Group’s Q3 results hit by HIM losses
XL Group has released preliminary estimates of natural catastrophe net losses of approximately $45 million related to the recent wildfires in Southern California and $20 million related to other events.
The company said that the estimated losses are approximately evenly split between the Company’s Insurance and Reinsurance segments.
The losses from the wildfires in the last month of 2017 takes total aggregate net loss estimates related to the fourth quarter 2017 catastrophes to $315 million, including the previously announced $250 million related to the October 2017 Northern California wildfires and other events. The total aggregate loss estimates are pre-tax and net of reinsurance, reinstatement and adjustment premiums and redeemable non-controlling interest.
XL Group also reaffirmed its previously disclosed aggregate net losses related to the third quarter 2017 catastrophes. Since these events, XL has continued to pay claims and receive reported loss information from its clients and brokers. Ongoing assessment has resulted in approximately 6% of the third quarter 2017 aggregate net losses being reallocated from the Reinsurance Segment to the Insurance Segment.
The company also stated that as a result of the reduced US corporate income tax rate enacted as part of the Tax Cuts and Jobs Act of 2017 it expects to recognize a one-time tax charge in the fourth quarter of 2017 related to the revaluation of its net Deferred Tax Asset (DTA). This charge is estimated to be approximately $98 million based on the Company’s net US DTA as of September 30, 2017. The actual charge will depend on XL’s results for the fourth quarter 2017. The charge will not affect XL’s operating net income, a non-GAAP financial measure. Based on XL’s preliminary assessment, XL does not currently expect US Tax Reform to have a material impact going forward on its average global effective tax rate.
XL Group, Insurance, Reinsurance, Natural catastrophe, Cat losses, California wildfires, Bermuda, Global