XL Group Ltd. in mid-January announced preliminary estimates of natural catastrophe net losses of roughly $45 million related to the recent wildfires in Southern California and $20 million related to other events.
The estimated losses are roughly evenly split between the company’s insurance and reinsurance segments. Total aggregate net loss estimates related to the fourth quarter 2017 catastrophes are $315 million, including the previously announced $250 million related to the October 2017 Northern California wildfires and other events, according to the company.
The total aggregate loss estimates are pre-tax and net of reinsurance, reinstatement and adjustment premiums and redeemable non-controlling interest. The company also reaffirmed its previously disclosed aggregate net losses related to the third quarter 2017 catastrophes.
Since these events, XL has continued to pay claims and receive reported loss information from its clients and brokers. Ongoing assessment has resulted in roughly 6 percent of the third quarter 2017 aggregate net losses being reallocated from the reinsurance segment to the insurance segment, according to the company.
As a result of the reduced U.S. corporate income tax rate enacted as part of the Tax Cuts and Jobs Act of 2017, XL expects to recognize a one-time tax charge in the fourth quarter of 2017 related to the revaluation of its net Deferred Tax Asset estimated to be rouhly $98 million based on the company’s net U.S. DTA as of Sept. 30, 2017. The actual charge will depend on XL’s results for the fourth quarter 2017.
The charge will not affect XL’s operating net income, and based on its preliminary assessment, XL does not currently expect U.S. Tax Reform to have a material impact going forward on its average global effective tax rate, according to the company.
XL Group Ltd. through its subsidiaries and under the XL Catlin brand is a global insurance and reinsurance company providing property/casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises.
Topics Catastrophe California Natural Disasters USA Profit Loss Wildfire Reinsurance AXA XL
Was this article valuable?
Here are more articles you may enjoy.
Biden Administration to Support Controversial UN Cyber Treaty 
St. Pete to Spend Millions on Stadium After Reducing Insurance Coverage This Year 
Florida Commission Accepts Three New Flood Models as Storm Impacts Rise 
Progressive to End Offering Dwelling Fire Insurance From This Issue
