The Progressive Corporation has revealed that its losses from the recent winter storms in the United States drove a $40 million reinsurance recovery for the firm, after claims exceeded its occurrence retention.
Progressive’s property insurance business reported a net catastrophe loss ratio of 47.4%, driving a combined ratio for that segment of 143.7% for February 2021, due to the winter storm events.
Some smaller catastrophe losses were also suffered in the personal lines and auto segments, but it seems the majority was due to property insurance line of business exposure to the storms.
The winter storms drove catastrophe losses across Texas, Oregon and the south eastern United States Progressive said.
The result was that its total losses from one of the storm events, presumably the Texas related event which was the largest, exceeded the $80 million retention threshold on Progressive’s per-occurrence excess of loss reinsurance program for its property insurance business.
As a result, a $40 million reinsurance recovery was recorded, as the storm drove incurred losses and loss adjustment expenses (ALAE) to trigger the XoL layer.
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– Cat claims 34% above 10-year average in 2021 on US winter storm: Jefferies.
– Winter storms mean higher renewal rates into 2022: ILS Capital.
– Aon says winter storm losses to hit record level, warns of climate effect.
– Winter storm losses in Texas drive ERCOT subrogation speculation.
– Winter storm losses to factor into alternative capital investor discussions: S&P.
– Winter storm exposed cat bonds stage partial price recovery.
– US winter storm loss creep likely to be prolonged: Aon.
– Winter storm losses seen a driver for mid-year reinsurance firming: KBW.
– Winter storm at $12bn – $18bn only attritional to aggregate cat bonds: Plenum.
– USAA aggregate cat bonds in focus on winter storm impacts.
– Hurricane-level winter storm claims to drive billions of losses: Aon.
– Winter storm Uri loss could be “well in excess” of $10bn: AIR.
– Palomar expects reinsurance recoveries for winter storm Uri.
– Winter storm Uri insured loss seen up to $20bn: Fitch.
– Winter storm Uri an aggregate threat, but commercial loss may protect ILS: Twelve Capital.
– Winter storm to drive record losses, reevaluation of cat budgets: AM Best.
– KCC raises US winter storm insurance industry loss estimate to $18bn.