Losses

Ida set to drive Louisiana carrier capital raises

A number of smaller homeowners carriers with portfolio concentrations in Louisiana are expected to seek capital raises later this year after what could be a second consecutive year of surplus erosion following Hurricane Ida, The Insurer can reveal.

BMS meteorologist warns of large commercial flood and auto claims in northeast US

Commercial flood claims following Ida’s passage through the northeast US could be significant, BMS meteorologist Andrew Siffert has warned, with auto losses also expected to be high.

AIR Worldwide pegs Hurricane Ida insured losses at $17bn to $25bn

Modelling firm AIR Worldwide has estimated that insured wind and storm surge losses to onshore property resulting from Hurricane Ida will range from $17bn to $25bn.

Northeastern flooding increases potential for $20bn+ Ida loss

Flooding in northeastern states triggered by the remnants of Hurricane Ida will increase the likelihood of the storm exceeding $20bn in insured losses, with hours clauses impacting overall reinsurance recoveries.

FedNat puts reinsurers on notice for Ida losses

Florida-based regional homeowners specialist FedNat Holding Company has said that it expects gross losses from Hurricane Ida will exceed the combined $18.3mn retention across its two separate reinsurance programs.

CoreLogic pegs Hurricane Ida insured losses at $14bn to $21bn

CoreLogic has predicted insured wind and flood losses from Hurricane Ida will range from $14bn to $21bn with more than 90 percent of the industry’s exposure based in Louisiana.

AM Best pegs global Covid-related losses at $40bn for (re)insurance industry

AM Best has estimated that global recognised pandemic-related losses for the (re)insurance industry so far total approximately $40bn, significantly below some original estimates.

Counting the cost of Ida – factors which could inflate the loss

One of the recurring traits of major catastrophe losses is the presence of a compounding loss factor which drives up the eventual industry bill. These compounding factors often result from the failure of man-made infrastructure which then triggers financial losses which would not have otherwise occurred.

$18bn+ Ida brunt expected to weigh on personal lines

Hurricane Ida looks to be developing a loss profile where claims are more heavily weighted to personal than commercial lines – albeit less so than with last year’s Hurricane Laura – and where a meaningful share will be taken by the E&S market and reinsurers, both represented in Lloyd’s.

KCC estimates Hurricane Ida losses at $18bn

Hurricane Ida will cost insurers close to $18bn, according to a preliminary estimate from Karen Clark & Company.

Fitch: Ida not a capital event for industry

While Hurricane Ida is expected to generate significant economic and insured losses in Louisiana, Fitch said it expects it will be an earnings and not a capital event for the industry.

AM Best: Hurricane Ida losses “manageable” for (re)insurance industry

AM Best expects the loss burden from Ida will be manageable for the industry as a whole but said it will monitor the impact on individual insurers as it highlighted the smaller surplus base and reinsurance dependence of carriers with written premium concentration in Louisiana.

Insurers fear significant losses as Caldor Fire nears Lake Tahoe

Insurers are bracing for major losses as the Caldor Fire continues to rage with evacuation orders in place around the Lake Tahoe Basin as the blaze threatens homes and businesses near the popular Californian holiday destination.

European (re)insurance shares dip after Ida landfall

European stocks dipped in morning trading on Tuesday as investors continued to react to the landfall of Hurricane Ida in Louisiana over the weekend.

GC: wind v water to play key role in Ida claims fallout

Guy Carpenter has said that insurance policy terms in the context of wind versus water will play a meaningful role in adjusting Ida claims as it also pointed to significant impacts for energy and utility sectors and the likelihood of elevated repair costs.

RMS stochastic event analysis puts Ida at a $16bn loss

An exercise run by modelling firm RMS across a series of stochastic events selected following the landfall of Hurricane Ida points to an industry median loss of around $16bn.

Early analysts’ take: Ida not expected to materially alter market dynamics

As New Orleans and other areas of Louisiana impacted by one of the strongest ever recorded storms to hit the state began to assess the damage, the early take from equity analysts is that insured losses from Ida are unlikely to be of a magnitude that will significantly alter P&C (re)insurance market dynamics.

Hurricane Ida: Factors that could drive up the industry loss bill

Twelve Capital and Plenum see no meaningful Ida impact to ILS portfolios

ILS fund managers Twelve Capital and Plenum have provided initial feedback on Hurricane Ida’s impact, with both suggesting the impacts to their portfolios will be minor if early indications of a $15bn to $25bn industry loss are borne out.

UPDATED: Early Ida insured loss expectations converge around $20bn

As Ida weakened to below major hurricane strength overnight in Louisiana, initial expectations of industry sources canvassed by The Insurer were converging around a potential $20bn insured loss, albeit with the possibility of an upward shift as flood waters rise in parts of Southeast Louisiana as well as post-event loss magnification.

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