A.M. Best's recent catastrophe-related loss estimates reveal a bad first nine months of 2011 for U.S. P&C insurers. According to the agency's briefing “U.S. Property/Casualty Catastrophe Losses Climb to $38.6 Billion for the First Nine Months of 2011,” the estimated total net pretax accident-year catastrophe-related losses were $38.6 billion, up $22.5 billion (140 percent), from an estimated $16.1 billion reported during the same period a year ago.
A.M. Best says the Midwest and Southeast tornadoes and hailstorms in April and May were the main contributors to the high numbers. Other contributors included flooding, blizzards, wildfires and Hurricane Irene.
RMS also reported higher 2011 insured losses, estimating that total insured losses from the 2011 Atlantic Hurricane Season will be in the region of $5 billion. The firm also said the 2011 Atlantic Hurricane Season ties for third with the 1887, 1995 and 2010 seasons in terms of number of storms, since records began in 1851. The Atlantic remains in a period of heightened storm activity, with numbers in 2011 being almost twice as high as the long-term average (1950-2010) of 10.5.
