Aspen Insurance Holdings Limited AHL recently provided catastrophe loss estimates related to the explosion in Tianjin, China in Aug 2015.
In the third quarter of 2015, the company expects to incur a pre-tax catastrophe loss in the range of nearly $50 million related to the event. Aspen projects the loss, net of reinsurance and reinstatement premiums, to be around $30 million. This is expected to affect the company financials. The loss will primarily be recorded in the Reinsurance segment of the company. The insurer also foresees a pretax loss of $20 million from natural catastrophes, net of reinsurance and reinstatement premiums, in the third quarter. This includes wildfires in Washington State in the U.S., and an earthquake in Chile.
In the last reported quarter, Aspen’s pretax catastrophe losses net of reinsurance recoveries plunged 46.2% year over year. As a result, combined ratio also improved. As for the Reinsurance segment, the company witnessed enhanced results owing to its market share, close client relationships, and responsive solutions. However, catastrophe losses as projected by the company might affect the segment’s financials.
The company is slated to release third-quarter 2015 earnings on Nov 2, after the closing bell. The Zacks Consensus Estimate for the same is pegged at 94 cents per share, translating into a year-over-year decline of 13.43%.
Other property and casualty insurers that also provided third-quarter loss estimates related to the Tainjin explosion include Validus Holdings, Ltd. VR, XL Group plc XL and PartnerRe Ltd. PRE.
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