Claims and losses

The reinsurance broker said the losses will fall on the higher end of industry loss ranges.

Mark to market investment losses and decreased capital allocation in high volatility lines are contributing to an ongoing hard market for reinsurance.

The broking firm’s (re)insurance market update said growth in alternative capital is a now a permanent feature of the market.

More than half of the top 20 global reinsurers maintained or reduced their natural catastrophe exposures during the January 2023 renewals.

The broker said that capital levels should stabilise at previous levels, given a normal second half.

The estimate is based on the impact to approximately 200 structures where RLI provided primarily homeowners’ insurance.

Large carriers with geographic spread across the continental US will have the capital and reinsurance coverage to absorb losses related to the wildfires, according to AM Best.

The agency put insured property values in the burn footprint at $2.5bn to $4bn, which marks an uptick compared to Moody’s estimate from last week, when the agency pegged insured losses at around $1bn.

AM Best said market hardening was likely to continue through 2024, given global market conditions.

Vesttoo has filed documents at the Bankruptcy Court for the District of Delaware that seek an automatic stay against White Rock and its putative liquidators.

Homeowners’ and commercial insurance policies typically exclude floods, mudslides, debris flow and other similar disasters unless directly or indirectly caused by a recent wildfire.

The loss event was flagged by European carriers in recent Q2 earnings disclosures.