Based on an industry loss of between $5 billion and $8 billion, Beazley forecast claims from the event of at least $55 million.
The losses come from Beazley’s property (direct and reinsurance) portfolios. If the actual losses increase, Beazley reported that half of the deterioration is covered by reinsurance, with reinsurance in place for other such events.
“These losses are in line with its peers although, given that 40% of its book is in specialty lines, we expected the figure to be slightly below that of its peers,” said Eamonn Flanagan, analyst at Shore Capital.