ProSight Global, a property and casualty insurance company, has reported that Q3 was the largest catastrophe quarter in the company’s history, according to the latest figures.
The results showed pre-tax impact of catastrophes of $22 million, which includes over $16.9 million of net losses and $5.1 million of related reinstatement premiums on reinsurance contracts.
ProSight explained that most of the loss activity stems from hurricane Laura, which hit the Gulf Coast of the US in August of this year and the California and Oregon wildfires.
It also reported a combined ratio of 108.3 percent compared to 98.3 percent in Q3 2019, which ProSight said reflected 11.6 points of catastrophe losses and the impact of related reinstatement premiums in Q3 2020 compared to zero points in Q3 2019.
It also noted that the combined ratio excluding the impact of catastrophes is 96.7 percent for the current period compared to 98.3 percent for the Q3 2019.
Elsewhere, results showed rate execution of 11.8 percent, which excludes workers compensation, and 10.9 percent, that includes workers compensation, with acceleration throughout the quarter.
The firm’s net investment income was slightly over $20 million in Q3, which is an increase of 19.6 percent from the same period last year. ProSight suggested this was driven by ”growth of the portfolio and strong investment results”.
The company saw strong expense management which resulted in $23 million of general and administrative expenses in Q3 2020, a decrease of $3 million (or 11.5 percent) compared to Q3 2019.
Commenting on the Q3 financial report, Larry Hannon, president and CEO of ProSight, said: “We extend our sympathies to all of those impacted by the events that caused so much damage on both coasts and in the Gulf this quarter. I’d like to thank our employees and distribution partners for responding quickly to our customers in their time of need.”
Hannon discusses ProSights largest catastrophe quarter, by suggesting “despite the cat losses and the ongoing impact of COVID-19 in the quarter, we did generate positive net income, grow our book value per share, and post a 59.9 percent loss ratio excluding cats and related items”.
He concluded: “We saw an increase in submissions along with strong rate execution, both of which continue into the fourth quarter. Overall, we are executing well in this environment, providing exceptional service to our insureds and distribution partners, and setting the stage for profitable growth in the years ahead.”
In January, ProSight announced it would expand the business and start offering a captive solution.