The hurricanes in the third quarter were bad enough for Travelers Companies Inc (NYSE:TRV) but the fourth quarter is not likely to be much better.
The insurer estimated catastrophe losses related to the recent California wildfires at between US$525mln and US$675mln before tax.
The company registered US$700mln of disaster-related pre-tax losses in the third quarter, with most of those accounted for by hurricanes Harvey, Irma and Maria.
“The toll from one of the worst wildfire events in US history is devastating,” said Alan Schnitzer, chairman and chief executive officer.
“Lives were tragically lost, property and personal possessions were destroyed and entire communities are now forced to start over. Our claim professionals are on the ground, and we’ll work tirelessly with our customers to help them and their communities recover as quickly as possible,” he added.
Despite the large pay-outs it will have to pay, the company said it intends to resume repurchases of its common shares.
The company had previously suspended its common share repurchase activity as it assessed catastrophe losses from recent hurricanes and the wildfires.