Lloyd’s expected to be among hardest hit from Hurricane Irma
Lloyd’s is expected to be among the hardest hit from Hurricane Irma, according to a Sept. 11 Moody’s report.
Lloyd’s has the second-highest exposure to Florida-only insurers with estimated premiums assumed of just under $500 million. On top of the list is the Florida Hurricane Catastrophe Fund (FHCF) with just above $800 million. In third place is Allianz with under $200 million estimated premiums assumed from Florida-only property insurers, closely followed by Tokio Marine, Everest Re and W.R. Berkley. Further down the list are XL Group, Endurance, Chubb and Partner Re.
Hurricane Irma made landfall in Florida on Sunday, Sept. 10, in the morning after wreaking havoc in the Caribbean. Florida-focused insurers face large losses from Hurricane Irma, according to Moody’s.
The List of Florida-only homeowners’ insurers is led by Universal with $781 million of Florida direct premiums written, followed by Federated National with $430 million and Citizens Property with $429 million.
Florida-only insurers face the risk of a significant deterioration of capital if Irma or future events significantly exceed their reinsurance limits, Moody’s said. The Florida-only homeowners companies have taken advantage of declining reinsurance prices and expanded contract terms to extend their protection in recent years.
“We expect Florida-only insurers to cede significant losses to these reinsurers. However, because reinsurers often retrocede business, the amount of retained exposure is not transparent from public disclosures. Although the premiums are relatively small relative to the companies’ overall equity, the gross exposure is substantial,” Moody’s said.
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