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Cats worsen gloomy results for US insurers
27 July 2010
Although it is early in the reporting season for US insurance firms second-quarter results, already it can be seen that catastrophe losses are hurting results. Both Chubb and Travelers have reported second-quarter catastrophe losses.
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Although it is early in the reporting season for US insurance firms second-quarter results, already it can be seen that catastrophe losses are hurting results. Both Chubb and Travelers have reported second quarter catastrophe losses as a result of wind, hail and flooding throughout the US, causing analysts to revise their estimations of US property-catastrophe exposure in the second quarter.
Both firms experienced about a 14% combined ratio impact on their personal lines units. This was three times the normal second-quarter levels.
In response, analysts at Morgan Stanley changed their estimated results for US insurer Allstate – the firm that has the leading market share in the Midwest and tornado-exposed states.
“Using various methods to gauge Allstate’s exposure and impact on results, we estimate catastrophe losses of $922m in 2Q or 1.1x year ago levels and 2.3x historical 2Q average,” said Morgan Stanley.
Gregory Locraft, an analyst for...
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