Third-quarter natural catastrophe losses the largest since 2017

The U.S. P&C industry’s reported this year’s third-quarter natural catastrophe losses will be the largest since Q3 2017, according to a new report from Fitch Ratings.

The quarter was marked by an extremely active hurricane season combined with another record-breaking California wildfire season that fueled heavy losses.

According to Fitch Ratings, a number of reinsurers have pre-announced material Q3 2020 catastrophe estimates with losses from major weather events, including Hurricanes Isaias, Laura, and Sally, the Derecho Windstorm, and wildfires in California and Oregon.

Hurricane Laura represents the largest individual loss event with estimated insured losses between $11–15 billion. In total, Fitch Ratings says third-quarter events could sum to approximately $25 billion, moving 2020 to an above-average year for natural catastrophe losses.

Experts say these loss projections exceed many individual company catastrophe budgets and further pressure full-year 2020 earnings.

Of note, these losses do not account for any additional losses incurred in first-half 2020 related to the coronavirus pandemic, which are likely to increase through the remainder of the year.

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