XL Announce 2016 Q2 Preliminary Loss Estimate
XL Group plc announced its preliminary net loss estimate in the second quarter of 2016 of approximately $240 million relating to natural catastrophes.
“This preliminary estimate is pretax and net of reinsurance and reinstatement premiums and is split approximately $100 million in the Insurance segment and $140 million in the Reinsurance segment,” the company said.
“Losses contributing to this estimate include wildfires in Canada, flooding in Europe, earthquakes in Japan and Ecuador and hailstorms in the United States among others. In aggregate, natural catastrophe events are estimated to result in losses to the [re]insurance industry in excess of $16 billion in the second quarter of 2016.
“The largest of these events, the wildfires in and around Fort McMurray, Alberta Canada, accounts for approximately $120 million of the Company’s total preliminary loss estimate and is primarily a Reinsurance segment loss.
“The Company’s preliminary estimates are based on its review of individual treaties and policies expected to be impacted, along with available client and industry data. These preliminary estimates involve the exercise of considerable judgment.
“Given that the facts are still developing, as well as the complexities of the nature of the events, there is considerable uncertainty associated with the loss estimates of these events and such estimates are accordingly subject to revision as additional information becomes available. Actual losses may differ materially from these preliminary estimates.”
The Company also announced that it intends to release its Second Quarter 2016 results after the close of regular stock market trading hours on Wednesday, July 27, 2016.c
