The Chubb Corporation, a massive property insurance organization, has had a difficult time recovering from recent storms in the U.S. The occurrence of natural disasters in the U.S. has been unusually high this year, and the damage caused by these storms has been unprecedented. The storms have imposed gargantuan financial losses on the insurance industry and many companies are still sifting through claims from earlier in the year that are adding to total losses. Chubb officials have warned investors that the company’s third quarter losses may end up being higher than the estimates they recently released.
According to Chubb, the third quarter accounts for $475 million in insured losses so far. The majority of these losses – $300 million to $375 million – come from Hurricane Irene of this past August. The storm cut through much of the Eastern U.S., causing damage from wind and flooding. The remainder accounts for fires in the West and flooding in the South.
Chubb officials claim that there are still claims coming in from August’s Hurricane Irene, which may end up driving total losses higher. The relatively peaceful October may bring some needed relief to the insurer, but storms at the end of the year may continue the trend of insured losses.
The third quarter ends on October 20. Chubb will release an updated report at that time which will document the full breadth of losses for this quarter.