The Navigators Group, Inc. declared its catastrophe loss estimates for the second quarter of 2016. The company expects to incur loss of $12 million ($18 million pre-tax) net of reinsurance and reinstatement premiums. The loss estimate takes into account the impact of multiple natural catastrophes across the world during the second quarter.

Though the losses stemmed from various natural calamities, the wildfires in Alberta, Canada that took place on May 1 as well as the earthquake in Ecuador on Apr 16 were considered to be the primary factors behind the loss incurred by the company. The wildfires in Alberta had severely affected the company’s policyholders in that area.

Being a property and casualty insurer, Navigators Group remains exposed to losses from natural disasters. This, in turn, affects its underwriting results. The catastrophe loss incurred is expected to weigh on underwriting profitability and combined ratio in the second quarter. Last quarter too Navigators Group’s combined ratio deteriorated 280 basis points year over year due to higher loss ratio. Nonetheless, the company’s expense ratio remained unchanged in the quarter.

The industry is estimated to incur an expected loss between $15 billion and $20 billion or more due to 25 weather events in the second quarter.

Recently, many other insurers posted their catastrophe loss estimates for the second quarter. While Validus Holdings, Ltd. estimates its catastrophe loss to be around $60 million, Chubb Ltd. (CB Quick QuoteCB - Free Report) anticipates its loss to be approximately $315 million and XL Group plc estimates the loss to be around $240 million.

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