Chubb, XL expect Q2 natural catastrophe losses above $100 million

Both Chubb Corp. and XL Group are estimating losses from natural catastrophes during the second quarter of the year to be above $100 million.

Chubb, based in New Jersey, expects a pre-tax loss of $240 million, or $156 million after tax. About $175 million of the pre-tax loss is attributable to losses from catastrophes in the United States, particularly severe storms in the central states, the company said.

Losses from outside of the U.S. will be about $65 million before tax, mainly from storms and flooding in southern Alberta.

The company plans to announce its second quarter financial results on July 25.

Meanwhile, Dublin-based XL Group said it expects a $135 million loss relating to natural catastrophes in the second quarter, before tax and net of reinsurance and reinstatement premiums.

The estimate is split about 55% and 45% between its insurance and reinsurance segments, respectively, it said.

Flooding in Europe, Argentina and Canada all contributed to the estimate, as well as tornadoes and hailstorms in the U.S., XL noted.

“This preliminary estimate involves the exercise of considerable judgment,” the company’s statement said. “Given that the facts are still developing, as well as the complexities of the nature of the events, there is considerable uncertainty associated with the loss estimate of these events and such estimate is accordingly subject to revision as additional information becomes available.  Actual losses may differ materially from this preliminary estimate.”

XL plans to announce its Q2 financial results on July 29.