RLI says its Q3 cat losses will be up to $45mn

US specialty insurer RLI has preannounced an estimated range of pre-tax cat losses for the third quarter of $35mn to $45mn, including the impact of a quartet of landfalling hurricanes.

In a statement, the Peoria, Illinois-based carrier said its Q3 estimates include losses from hurricanes Hanna, Isaias, Laura and Sally.

The preliminary estimates will be updated for the most recent catastrophes when RLI releases its Q3 earnings on 21 October.

The first of the quartet of storms made landfall at Category 1 strength in South Texas on 23 July. Modelling firm RMS has estimated insured losses at the industry level from Hannah of $400mn, including NFIP impacts, with KCC’s ex-NFIP estimate set at $350mn.

Isaias made landfall at a similar strength a week later and has been estimated by RMS to bring $3bn to $5bn of insured losses, including up to $500mn in the Caribbean.

The RMS estimate includes NFIP losses of $400mn to $700mn. KCC estimated US insured losses of $4bn.

Then on 21 August, Laura crossed the Louisiana coast as a Category 4 storm, bringing more significant insured losses.

AIR Worldwide has the industry impact in the range of $4bn to $8bn, RMS in the $9bn to $13bn range, and KCC at $8.7bn for US insured losses.

The last of the quartet, Sally, struck on 12 September as a Category 2 hurricane in Alabama. RMS has estimated an industry loss of $2bn to $3.5bn, including $400mn to $800mn of NFIP losses.

AIR Worldwide and KCC both exclude NFIP losses in their respective estimates of $1bn to $3bn and $2bn.

RLI has reported solid results in the first half of 2020, with operating earnings up 17 percent in Q2 and a combined ratio that improved from 92.8 percent to 88.4 percent, after first quarter earnings that were broadly in line with Wall Street expectations.