Travelers almost half-way to aggregate reinsurance trigger after Q1 cats

Travelers almost half-way to aggregate reinsurance trigger after Q1 cats

After just the first-quarter of 2021, United States primary insurance company Travelers has actually worn down practically half the deductible sitting under its aggregate catastrophe reinsurance.As we reported yesterday, Travelers CEO Alan Schnitzer stated that after the first-quarter of this year, the insurer had tape-recorded its “highest-ever level of very first quarter disaster losses” demonstrating just how impactful the last few months have actually been in the United States.
The company reported $835 countless pre-tax disaster losses for Q1 2021, however on a gross basis the overall was greater.
The business revealed that it suffered $703 million of pre-tax and after reinsurance losses simply from Februarys winter storms (Uri) and Texas deep freeze.
As an outcome of this, Schntizer said throughout the Travelers profits call yesterday, that a substantial amount of its aggregate deductible has actually now been worn down, with just one quarter of the year gone.
As a pointer, Travelers upsized on its aggregate disaster reinsurance security for 2021, with the renewed treaty set to cover 70% of a $500 million layer, so $350 million of coverage and a $150 million retention.
Travelers 2021 aggregate reinsurance treaty covers qualifying losses from PCS-designated catastrophe events in North America in excess of $5 million per catastrophe event, up to a maximum of $250 million per-event, with the attachment for the protection sitting at $1.9 billion.
Since the end of Q1, Schnitzer stated that “Through March 31st we have collected $915 million of certifying losses towards the aggregate retention.”
Last year, Travelers had actually made a complete $280 million recovery from its home disaster aggregate reinsurance throughout the third-quarter of 2020, after serious weather and hurricanes penetrated the layer of security.
In 2021, the business appears like it could be well on its method to repeat that, despite the attachment being higher this year.

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