A.M. Best Co. has released its estimates for catastrophe-related losses experienced by the U.S. property/casualty (P/C) industry in the first half of 2011, which show that losses already have topped total year-end 2010 losses.
The estimated total net pretax accident-year catastrophe-related losses were $27.0 billion in the first half of 2011, up $15.1 billion, or 127%, from $11.9 billion reported during the same period a year ago. Total net pretax accident year catastrophe-related losses in 2010, according to A.M. Best, were an estimated $19.6 billion.
As discussed in the recently published analytical briefing “U.S. P/C First Half 2011 Cat Losses Reach $27.0 Billion,” A.M. Best believes the overall industry has the capital to effectively absorb the losses, but notes that the industry will be tested through the remainder of 2011, more so if another severe event occurs.