Maria turns 2017 cat losses into a capital event
Thursday, 09 28 2017, Category: Nature, Country: World
With every major catastrophe loss event it’s common to hear discussion of whether it will be a hit to reinsurer earnings, or to their capital. 2017 was running as a definite earnings impact to the majority of reinsurers, but the addition of a high loss estimate for hurricane Maria’s Caribbean impact has moved Fitch’s opinion and it now warns of the potential for rating actions.
“Given the magnitude of the Maria-estimated losses, we now believe that 2017 catastrophe losses will constitute a capital event for a number of (re)insurance companies, as opposed to just an earnings event,” Fitch Ratings explained yesterday.