Based on an insured market loss of US$10 billion for Typhoon Faxai, and US$15 billion for Typhoon Hagibis and US$8 billion for Hurricane Dorian, Hiscox has reserved net US$165 million to cover claims from the three storms.
This amount, shared in its third quarter results, is materially in excess of the group’s catastrophe budget for the second half. In addition, fees and profit commissions are expected to be approximately US$25 million lower at the year-end.
Hiscox stressed there is still a significant degree of uncertainty around the market losses, particularly for Typhoon Hagibis where widespread flooding took place. The estimate is within the group’s modelled range of claims for events of this nature, which were updated following the experience of the market last year.
Exposure to the Japanese windstorms is primarily through Hiscox Re & ILS, and losses from Hurricane Dorian are contained mostly within Hiscox London Market.
The group is also exposed to the recent wildfires in California, however at this early stage the size of any potential loss is not yet clear. Hiscox London Market has also experienced a higher number of large losses, with claims totalling approximately US$30 million int he US public company directors’ and officers’, property, marine and energy and space portfolios.
 

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