U.S. primary player Farmers Insurance said that it expects to claim the total bill from hurricane Irma claims back from its reinsurance panel, with an estimated $140 million expected to be fully recoverable under the terms of its program, which adds to the $360 million of hurricane Harvey claims the company claimed from reinsurers.
Farmers said that it estimates that hurricane Irma and related storms will result in around 24,000 insurance claims, estimated to cost the firm $140 million gross.
The company said that the entire amount would be passed on to its reinsurance panel in this case, leaving Farmers with a net loss of zero from hurricane Irma.
That’s a little different to hurricane Harvey, which saw Farmers with $500 million of gross losses, but $140 million net after taxes, as it passed on up to $360 million to its reinsurance providers.
So in total Farmers is set to pass around $500 million of hurricane losses to its reinsurers for Harvey and Irma.
Farmers Insurance is part of the Zurich group of companies and analysts saw the fact that Farmers hurricane Irma losses fell within its reinsurance provisions as a positive for the group, demonstrating strong risk management.