Wildfires, hurricanes, tornadoes, hail storms, Nor’easters and mudslides — severe weather disasters are sinking the biggest U.S. insurers.
Over the past year, Allstate Corp. estimated its pretax catastrophe losses at $906 million, the most in a year, and Travelers Cos. reported its sixth-straight quarter in which costs rose above $300 million.
The series of severe weather events “exceeded our historical experience and our expectations,” Travelers Chief Executive Officer Alan Schnitzer said on Thursday. “We haven’t seen a string like that in the last decade.”
Allstate cited three major hail storms in Texas and Colorado in June as contributors to the recent surge in claims.
Travelers profit was $1.81 a share in the three months ending June 30. That missed the $2.41 average estimate of 20 analysts surveyed by Bloomberg.
We’ve seen a surge in natural weather-related disasters over recent years, and the significant economic effects that come with them.
Since 1980, the U.S. has sustained 219 billion-dollar climate-related disasters with cumulative costs exceeding $1.5 trillion dollars.
From 1980-2016, the annual average number of billion-dollar events was 5.8 whereas the most recent five years (2013-2017) saw an annual average of 11.6 events.
2018 is setting up to be the worst year yet, as we progress further into the Grand Solar Minimum.
[Featured Image: Marcus Kauffman]