HCI Group estimates Irma loss at up to $300m, triggers reinsurance
Homeowners’ re/insurer HCI Group said on Sept. 18 that it estimated losses related to Hurricane Irma in the range of $100 million to $300 million for its principal operating subsidiary Homeowners Choice Property & Casualty Insurance Company.
These losses will exceed its $16 million reinsurance retention level and trigger reinsurance recoveries, as well as trigger the loss of accrued benefits and deferrals under retrospective provisions within certain reinsurance contracts.
HCI’s captive reinsurance subsidiary, Claddaugh Casualty Insurance Company, which participates in the Homeowners Choice reinsurance program, estimates a loss of $34 million from Hurricane Irma which is the full extent of the coverage it provided to Homeowners Choice.
Homeowners Choice Property & Casualty Insurance Company is a leading provider of homeowners’ insurance in Florida.
Hurricane Irma made landfall in the Florida Keys a week ago before making a second landfall in the southwest coast of Florida shortly thereafter. Irma is the first major hurricane to make landfall in Florida since Hurricane Wilma struck in 2005, HCI said in the statement.
“Our thoughts go out to all who have been affected by this hurricane,” said Paresh Patel, HCI’s CEO.
“Our focus at this time is on our policyholders and ensuring their claims are handled quickly and efficiently. We have ample resources, including reinsurance recoveries and cash, to meet our obligations to policyholders.”
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