FedNat ups Florida hail loss to $11m after quota share reinsurance


Florida-focused U.S. primary insurer FedNat has increased its estimate of losses from the Brevard County hailstorm in late March by 57% to $11 million, after accounting for a share taken by its quota share reinsurance partners.

Large hail image from D-7 RoofingThe Brevard County hail storm at the end of March has become the biggest catastrophe loss event of the quarter for insurers operating in Florida.

The hail storm struck is the most significant in Brevard County records and saw large hail of 2 inches in diameter fall in the Indialantic area, while more widely hail as large as coins fell across Canaveral Groves, Cocoa, Rockledge, Merritt Island and Satellite Beach for around a ten minute period.

Insurers United Insurance Holdings (UPC Insurance), Heritage Insurance Holdings, Inc. and HCI Group have all reported impacts from the hail loss event.

FedNat had previously announced a $7 million impact to its first-quarter 2019 results, net of quota share reinsurance, but this has now ben hiked by 57% to $11 million in a fresh statement from the insurer.

Given the increase in the hail storms expected impact, FedNat now reports that it expects to suffer $12.2 million of weather-related losses, net of its quota-share reinsurance, for the first three months of 2019.

The insurer noted that its subsidiaries FedNat Insurance Company and Monarch National Insurance Company both have above state-wide average residential property market share in Brevard County, which exacerbated the firms exposure to this particular event.

FedNat also reported adverse development related to a 2018 hail loss as well, $0.9 million, net of quota-share reinsurance, for hail storms that struck central Florida and South Carolina in the first half of last year.

FedNat also noted that its catastrophe reinsurance program would only kick in and cover losses if the hailstorm costs exceed $20 million for FedNat Insurance Company and $3 million for Monarch National Insurance Company.

The storm has dented Q1 profits for the Floridian primary insurers and analysts said that catastrophe and weather related losses are now heading above expectation for the quarter for this cohort.


ils-asia-2019Register today to attend our next ILS conference in Singapore, ILS Asia 2019.

We’re returning to Singapore for our fourth annual ILS market conference for the Asia region. Please register today to secure the best prices. Early bird tickets are still on sale.

Artemis catastrophe bond ILS DashboardAnalyse catastrophe bond market issuance using the Artemis Dashboard and Charts.

We’ve tracked more than 650 cat bonds and related ILS transactions since 1996, all of which are included in our extensive Deal Directory.

Use the Artemis Dashboard and our Cat Bond Market Charts to analyse this market!

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
Hurricane Michael upgraded to first U.S. Cat 5 landfall since Andrew

Hurricane Michael's wind speeds at landfall in Florida have been upgraded by the U.S. NOAA’s National Hurricane Center scientists in...