RLI Corporation, a traditional insurance and reinsurance specialist, has estimated that its pre-tax and net of reinsurance catastrophe losses from wildfires in Hawaii will total between $65 million and $75 million.
The company said these losses will be reflected in its third-quarter results and RLI is the first carrier to provide an estimate for the loss impact it will suffer from the devastating fires on Maui, Hawaii.
RLI said that the estimate is given net of reinsurance recoverables and includes reinstatement premiums, while it is basing the estimate on the impact to approximately 200 structures where RLI provided primarily homeowners insurance.
Interestingly, the average house price in Maui is estimated at between $1 million and $1.4 million, depending on data source used, while the average reconstruction value is somewhat lower at between $450,000 up to $600,000, various sources claim.
Which perhaps gives some indications as to RLI’s ability to tap its reinsurance for the wildfire losses, given the reconstruction value of around 200 homes on Maui could be quite a bit higher than its current loss estimate.
The insurer noted that its loss estimate is subject to change, because of the complexity of claims and preliminary nature of the information currently available.
“RLI has served homeowners in Hawaii for more than 25 years,” explained, RLI Corp. President & CEO Craig Kliethermes. “We extend our heartfelt support to our Hawaii-based employees and condolences to those who have lost loved ones, homes and businesses, or have otherwise been affected by these devastating wildfires. Our team is working tirelessly with our trusted agents to help customers who have been impacted recover as quickly as possible.”