Chubb Says Disasters Cost $390 Million, More Than Projected

  • Canada wildfires contributed to cost, along with Japan quake
  • Insurer had projected catastrophe costs of $280 million

Chubb Ltd., the insurer led by Chief Executive Officer Evan Greenberg, said second-quarter catastrophes cost more than the company had planned.

The pretax cost was about $390 million, led by events in North America, and compares with a previous internal projection of $280 million, the Zurich-based company said Tuesday in a statement.

Chubb joins Bermuda-based Validus Holdings Ltd. in announcing preliminary catastrophe costs before releasing complete quarterly results. Both companies cited Canadian wildfires along with expenses from an earthquake in Japan.

“The company is providing this estimate in light of the elevated number of natural catastrophes experienced by the industry globally in the quarter, totaling more than 25 events,” Chubb said in the statement.

European floods and an Ecuadorian earthquake also contributed to the sum. The total expense was probably about $315 million after tax, Chubb said. The insurer is scheduled to report results on July 26 and hold a conference call the next day.

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