Hurricane Ida 2021
Hurricane Ida made landfall in Louisiana as a major Category 4 storm with 150 mph sustained winds. The immediate impacts were severe, but hurricane Ida’s remnants also created a significant flood event further north.
Early estimates of insurance and reinsurance market losses were pegged at $15 billion to $25 billion, with ramifications for some ILS market positions, especially in collateralized reinsurance.
All of our hurricane Ida news coverage can be found below.
The Hanover Insurance Group, Inc.'s geographic footprint was impacted by 18 industry catastrophe events in July and August, leading the property and casualty insurer to pre-announce third quarter catastrophe losses in the range of $150 million to $165 million, pre-tax ($119m-$130m after-tax). Approximately $75 million of The Hanover's preliminary estimated losses read the full article →
Information from sources suggests that some primary insurance carriers are likely to recover significant amounts from their reinsurance arrangements after hurricane Ida, while a number of insurers are likely to exhaust their reinsurance towers completely, and some catastrophe bonds remain exposed. We understand some brokers have been telling their clients just read the full article →
Catastrophe bonds sponsored by specialty insurance and reinsurance company Fidelis Insurance Holdings Limited have been marked down by as much as 10%, or slightly more, as industry loss expectations for hurricane Ida rise, while some of the other exposed cat bonds have also seen more price declines. In addition, some of read the full article →
The Progressive Corporation has reported that its excess-of-loss reinsurance program will reduce its gross exposure to hurricane Ida, a catastrophe event that the insurer says has driven reported and IBNR losses of $510 million in the aggregate across the US Gulf Coast and Northeast. Progressive said that, included in its August read the full article →
A hurricane Ida industry loss estimate update from RMS has put the National Flood Insurance Program's (NFIP) reinsurance counterparties and catastrophe bond investors on-watch for potential losses, as the estimate suggests the traditional reinsurance component at-least is likely to attach and face losses. Late yesterday, catastrophe risk modeller RMS updated its read the full article →
Catastrophe risk modelling firm RMS has now added a further $6 billion to $9 billion of insurance and reinsurance market losses to its industry estimate for recent hurricane Ida, adding the expected flood toll further north and taking the total estimate range to $31 billion to $44 billion. RMS' estimate is read the full article →
US primary insurance carrier Allstate expects a $1.4 billion gross loss from recent hurricane Ida, but said that this will be reduced significantly to an estimated $631 million, pre-tax, thanks to what appear significant reinsurance recoveries from its excess-of-loss program. Allstate's estimate of its losses from hurricane Ida factors in the read the full article →
Hurricane Ida is a completely different kind of loss to Hurricane Katrina, because there was no element of surprise when the category 4 storm ploughed into the Louisiana coastline on 29 August, 16 years after Katrina. This is according to Matt FitzGerald, managing partner at Gallagher Re. "It's entirely different," he read the full article →
Analysts at investment bank Jefferies said this morning that they estimate the insurance and reinsurance industry loss from recent hurricane Ida will be around $32.2 billion, taking the 2021 catastrophe loss year-to-date run-rate far above the average. August's catastrophe events, including hurricane Ida which was the largest of the year so read the full article →
Catastrophe risk modeller AIR Worldwide now says that hurricane Ida will cost the insurance and reinsurance market between $20 billion and $30 billion, an estimate that now includes private market inland flood insured losses. AIR's first industry loss estimate for hurricane Ida was for the wind and storm surge impacts of read the full article →