CNA financial projects US$143 million in Q3 catastrophe losses
CNA financial projects US$143 million in Q3 catastrophe losses | Insurance Business Canada
Catastrophe & Flood
CNA financial projects US$143 million in Q3 catastrophe losses
Hurricane Helene accounts for US$55 million of expected pretax catastrophe losses
Catastrophe & Flood
By
Kenneth Araullo
CNA Financial Corporation announced it expects to report pretax net catastrophe losses of US$143 million for the third quarter of 2024.
Approximately 75% of these losses are attributed to four major events, including US$55 million from Hurricane Helene. The remaining US$35 million in losses is spread across several other events from the quarter.
The catastrophe losses consist of US$127 million in the commercial segment and US$16 million in the international segment. CNA stated that the combined ratio impact of these catastrophe losses aligns with its third-quarter average over the past five years.
In addition, CNA expects to report pretax net catastrophe losses related to Hurricane Milton, estimated between US$25 million and US$55 million, in its fourth-quarter 2024 results.
CNA’s chairman and CEO, Dino E. Robusto (pictured above), expressed concern for those affected by the recent hurricanes and other catastrophic events during the third quarter.
“We are all saddened by the devastation and destruction from Hurricanes Helene and Milton as well as other catastrophic events during the third quarter. Our thoughts are with those that lost loved ones, homes, and businesses and everyone suffering and working to recover,” Robusto said.
CNA is scheduled to report its full third-quarter 2024 results on Nov. 4, before the market opens.
Preliminary figures for the first three quarters of 2024 show global economic losses from natural catastrophes at US$280 billion, with insured losses reaching US$108 billion, according to Gallagher Re.
While overall losses remain slightly below the recent 10-year average of US$309 billion, insured losses have exceeded the decadal average of US$102 billion by 5%, primarily driven by a higher frequency of low-to-mid-size events with losses of US$2 billion or less.
Gallagher Re notes that much of the insured losses have been attributed to “non-peak” perils such as thunderstorms, floods, and wildfires, which have accounted for 68% of overall economic losses and 76% of insured losses.
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