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Economical puts first estimate of Fort Mac losses at $35 to $45 million
Cat reinsurance coverage will kick in at $30 million
Staff on May 11, 2016
Economical Insurance says its initial estimate of its pre-tax loss over the Fort McMurray wildfire is $35 to $45 million, net of reinsurance recoveries and reinstatement premiums.
The company said in a formal announcement that its catastrophe reinsurance coverage will kick in once losses reach $30 million. “We will record the loss related to this catastrophe in our second quarter results.”
The initial estimate is based mostly on claims put in so far, known exposures in the area, and reported percentage losses in various parts of the community. Given that there’s still no direct access to the disaster site, the company points out that “losses within an area can vary from one street to the next and the fire is still ongoing. It also assumes that this wildfire does not return to Fort McMurray. Consequently, the ultimate loss we incur may differ from our initial estimate.”
Read: Insurers begin to face the math over Fort McMurray
“The damage resulting from this catastrophic fire underscores the importance of our promise to our customers to be there when they need us most,” said Karen Gavan, president and CEO. “Our first priority is to our policyholders. We quickly mobilized our catastrophe response team and are providing emergency funding to our policyholders to help them with their immediate needs. We will continue to take care of our policyholders as they deal with the significant suffering this catastrophe has caused and move forward with rebuilding their lives.”
Economical puts first estimate of Fort Mac losses at $35 to $45 million
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