The Progressive Corporation has reported an expectation of recovering around $1.2 billion from its property reinsurance arrangements, to help it pay for an estimated $1.4 billion of gross property claims from hurricane Ian.
Progressive said that within its property business, it expects to retain $175 million of losses and $25 million of allocated loss adjustment expenses.
Its property combined ratio hit a huge 193% thanks to hurricane Ian, with a net catastrophe loss ratio of 97.7%.
Before taking reinsurance recoveries into account, Progressive said that it estimates its property losses and allocated loss adjustment expenses from hurricane Ian are $1.4 billion.
Adding that, an increase in its reinsurance recoverable largely reflected $1.2 billion of recoverables related to hurricane Ian under its non-regulated reinsurance programs, which is the amount the company estimates will be recovered from its reinsurers now.
On an IBNR basis, the company reported $760 million of catastrophe losses, or 19.6 loss ratio points, related to the multiple landfalls of Hurricane Ian, for September.
In addition, Progressive is expecting vehicle losses of $585 million, including boats and recreational vehicles, on top of the property losses it estimates.