Experts estimate insured losses from Matthew, the second major hurricane of 2016, to range between $6 and $10 billion.
Fitch Ratings estimates that if the storm results in insured losses in excess of $10 billion, a greater proportion of losses will be borne by reinsurers as opposed to primary companies.
CoreLogic, estimated residential and commercial insured losses to range between $4 billion and $6 billion with 90 percent of the damage due to wind and and 10 percent due to storm surge. The estimate doesn’t take into consideration losses due to flooding, business interruption or contents claims.
According to the analytics provider, because structures in the region are constructed of masonry, wood and veneers, coupled with stringent Florida building codes, will aid in reducing the total insured property losses compared with other memorable storms.
Florida Insurer Estimates Losses
Heritage Property & Casualty Company, part of Heritage Insurance Holdings, Inc., a property and casualty insurance holding company based in Clearwater, Fla., estimates its losses from the second major hurricane of the 2016 Atlantic hurricane season, Hurricane Matthew, to be under $100 million.
Bruce Lucas, Chairman and CEO of Heritage said that $40 million will be retained by the insurer, within its $1.9 billion reinsurance tower.
“The fact that we are able to withstand two hurricanes in one year with relatively minor anticipated impacts to our reinsurance tower speaks volumes to the strength of our reinsurance program and surplus in our insurance company,” said Lucas.
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