Re/insurer Chubb, which retains substantial operations on Bermuda, has estimated that catastrophe losses will cost the company $585 million pre-tax in the fourth quarter of 2018.
These estimates are predominantly made up of loss estimates relating to the California wildfires and Hurricane Michael, which totalled $475 million pre-tax.
A further $75 million pre-tax relates to other worldwide weather events in the fourth quarter such as storms in Australia and Typhoon Trami in Japan.
The remaining $35 million pre-tax is from loss development related to natural catastrophes occurring in the first three quarters of the year.
Chubb's estimates are net of reinsurance, include reinstatement premiums and comprise losses generated from the company's commercial and personal property and casualty insurance businesses as well as its reinsurance operations.
The loss estimates in Q4 after tax amount to $505 million. The tax rate on catastrophe losses is impacted by the jurisdiction in which the losses are incurred. For the quarter, the tax rate on the catastrophe losses is 13.7 percent. As a result, Chubb now expects the core operating effective tax rate for the quarter to be 1.5 to 2.0 percentage points above the high end of the previously announced range.
Chubb, Results, Catastrophe, North America, Bermuda