HAMILTON, Bermuda, Oct. 11, 2017 /PRNewswire/ -- XL Group Ltd
("XL" and together with its subsidiaries, the "Company") (NYSE: XL)
today announced its preliminary estimate of net losses of
approximately $1.33 billion relating
to Hurricanes Harvey, Irma and Maria. For the third quarter of
2017, total catastrophe losses including smaller loss events are
preliminarily estimated at approximately $1.48 billion. These preliminary estimates
are pre-tax and net of reinsurance, reinstatement and adjustment
premiums and redeemable non-controlling interest. On an
after-tax basis, the preliminary estimate of total catastrophe net
losses for the quarter is approximately $1.35 billion.
The Company's preliminary estimates are based on a combination
of catastrophe modeling, exposure analysis and preliminary
ground-up notifications and are consistent with private insured
market loss estimates for Hurricanes Harvey, Irma and Maria in the
range of $75 billion to $90
billion. Hurricanes Harvey, Irma and Maria each
contributed approximately 25%, 40% and 25%, respectively, to the
Company loss estimates, with 10% related to all other events in the
quarter, most notably the Mexican earthquakes and Typhoon
Hato. The estimated losses are approximately evenly split
between the Company's Insurance and Reinsurance segments.
Following these events and meaningful reinsurance recoveries this
quarter, the Company continues to have significant catastrophe
reinsurance protections remaining for 2017 and 2018, including
catastrophe bond protections, some of which extend through
2019.
Commenting on today's announcement, XL's Chief Executive Officer
Mike McGavick said: "Our hearts
break at the havoc caused by these events; the terrible pain and
anguish suffered. We are proud of our people, some of whom have had
their own losses to deal with, who are working tirelessly with our
partners to help our clients in these difficult times.
"And, as ever, the problem of underinsurance is again laid bare,
afflicting especially those already less well off. It is appalling,
and all of us with expertise to offer must bend our minds to
solving these systemic failures.
"In terms of the effects on XL itself, given the specific nature
of the events themselves our estimated losses are largely in line
with our expectations, and our capital strength and talented teams
ensure that we remain positioned to continue solving the risk needs
of clients and brokers.
"As for market conditions, risk awareness has changed due to
these events, and this in turn should cause the market to move
towards more realistic and sustainable pricing for the risks
undertaken."
Given the complexities and the nature of these particular
events, including the magnitude, proximity and recent occurrence of
these events, limited claims data received to date, the likelihood
of longer development periods associated with the specific
characteristics of these events, the geographic and infrastructure
limitations related to the areas impacted and factors inherent
in loss estimation, among other matters, there is considerable
uncertainty associated with these loss estimates, and as such, they
are accordingly subject to revision as additional information
becomes available. Actual losses may differ materially from these
preliminary estimates.
About XL Group Ltd
XL Group Ltd (NYSE:XL), through its subsidiaries and under the
XL Catlin brand, is a global insurance and reinsurance company
providing property, casualty and specialty products to industrial,
commercial and professional firms, insurance companies and other
enterprises throughout the world. Clients look to XL Catlin
for answers to their most complex risks and to help move their
world forward. To learn more, visit www.xlgroup.com.
Forward Looking Statements
This press release contains forward-looking statements.
Statements that are not historical facts, including statements
about XL's beliefs, plans or expectations, are forward-looking
statements. These statements are based on current plans, estimates
and expectations, all of which involve risk and uncertainty.
Statements that include the words "expect," "estimate," "intend,"
"plan," "believe," "project," "anticipate," "may," "could," or
"would" and similar statements of a future or forward-looking
nature identify forward-looking statements. XL's actual losses may
differ materially from those included in such forward-looking
statements and therefore you should not place undue reliance on
them. A non-exclusive list of the important factors that could
cause XL's actual losses to differ materially from those in such
forward-looking statements includes (a) changes in the size of the
Company's claims relating to unpredictable natural or man-made
catastrophe losses due to the preliminary nature of reports and
estimates of loss and damage to date and the nature of these
particular events, including their magnitude, proximity and recent
occurrence, limited claims data received to date, the likelihood of
longer development periods associated with the specific
characteristics of these events, the geographic and infrastructure
limitations related to the areas impacted and factors inherent in
loss estimation; (b) changes in the number of insureds and ceding
companies impacted or the ultimate number and value of individual
claims relating to the relevant natural catastrophes due to the
preliminary nature of reports and estimates of loss and damage to
date; (c) the timely and full recoverability of under the relevant
reinsurance protection, or other amounts due to us, or changes to
our projections related to such recoverables; (d) actual loss
experience from insured or reinsured events and the timing of
claims payments being faster or the receipt of reinsurance
recoverables being slower than we anticipated; and (e) the other
factors set forth in our reports on Form 10-K and Form 10-Q and
other documents on file with the Securities and Exchange
Commission. XL undertakes no obligation to update publicly any
forward looking statement, whether as a result of new information,
future developments or otherwise.
XL intends to use its website as a means of disclosing
material non-public information and for complying with its
disclosure obligations under Regulation FD. Such disclosures will
be included on the website in the Investor Relations section.
Accordingly, investors should monitor such portions of XL's
website, in addition to following its press releases, SEC filings
and public conference calls and webcasts.
View original
content:http://www.prnewswire.com/news-releases/xl-group-announces-preliminary-loss-estimates-related-to-third-quarter-2017-natural-catastrophes-300535152.html
SOURCE XL Group Ltd