15 July 2016News

Endurance evaluates its share of $10 billion in global cat losses

Endurance Specialty Holdings has presented a rough estimate of $55.5 million net negative financial impact to the company in the second quarter of 2016 from the collective natural disasters which resulted in approximately $10 billion industry losses.

The Fort McMurrary wildfires in Canada, the storms in Texas and Europe, and the Kumamoto earthquake in Japan all contributed to the rough figure.

The net losses and loss expenses from the second quarter of 2016 catastrophe events were $73.6 million that went down by $11.1 million because of net reinstatement premiums.

The estimated net negative financial impact of underwriting results of $62.5 million was reduced even more by the net negative impact attributed to non-controlling interests of $7 million, resulting in the rough net negative financial impact to Endurance at $55.5 million.

The estimate is predominantly derived from a combination of its proprietary catastrophe modeling, standard industry models, a review of in-force contracts and preliminary indications from clients and brokers, according to Endurance.

Until most recently, reported claims as a result of these events have been limited; accordingly, the actual impact may ultimately differ materially from initial estimates.