Property/casualty industry's first-half catastrophe losses amount to $27 billion: Best
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OLDWICK, N.J.—The U.S. property/casualty insurance industry suffered $27 billion in catastrophe-related losses during the first half of 2011, A.M. Best Co. Inc. said in an analysis released Tuesday.
That represented a 127% increase over the $11.9 billion catastrophe losses sustained during the same period of 2010, the Oldwick, N.J.-based ratings agency said.
Losses for commercial lines of insurance rose to $8.3 billion in the first half, from $4.1 billion in the same period 2010. During the first six months of this year, U.S. reinsurers lost $3.6 billion in catastrophe-related losses as opposed to $800 million sustained during the same period in 2010.
“The overall industry has the capital to effectively absorb the losses,” Best said in its analysis, titled “U.S. P/C First Half 2011 Catastrophe Losses Reach $27.0 Billion.”
Forecasters watch hurricanes
But, Best also warned that the industry faces challenges through the remainder of 2011, and noted that forecasters have called for a more-active-than-average Atlantic hurricane season. A devastating hurricane season would make losses climb higher and “may be enough to impact the market cycle,” Best said.
Meanwhile, forecasters are watching Hurricane Irene this week as it gains strength and approaches the U.S.
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