Zurich forecasts Hurricanes Helene, Milton impact below $360 million

(Reuters) — Zurich Insurance Group said Thursday that its exposure to Hurricanes Helene and Milton, which wreaked havoc in the United States, would be less than $360 million, as insurers face increasing losses from natural catastrophes.

Analysts expect up to $55 billion in insured losses from the two major hurricanes. In addition to hurricane damage, insurers have seen a rise in losses from secondary perils such as storms, hail, wildfires and floods in recent years, which they attribute partly to climate change.

“We need to shift the attention from just focusing on hurricanes to those secondary perils that are starting to have an ever-increasing impact on financial results but also on society,” Zurich Chief Financial Officer Claudia Cordioli said.

Europe’s fifth-largest insurer said its third-quarter results included an estimated pretax loss for Hurricane Helene of $160 million. It expects preliminary fourth-quarter pretax losses due to Hurricane Milton to touch below $200 million.

Gross written premiums at Zurich’s property/casualty business rose 4% in the first nine months of this year, due to increasing rates in its commercial insurance and retail segments. Rates rose 5%.

Global commercial insurance rates fell 1% in the third quarter, the first quarterly decline in seven years, according to broker Marsh.