hurricane Irma 2017

During the third-quarter of the year, Universal Insurance Holdings, the Florida headquartered primary insurance carrier, continued to experience loss creep from 2017’s hurricane Irma, ceding additional losses through to reinsurance sources.

Loss costs on Florida property insurance business continue to be impacted by social inflation, according to the CEO of Universal Insurance Holdings, but this hasn’t put the carrier off writing more business in the state, with its Florida book expanding in Q2.

The Florida Hurricane Catastrophe Fund’s (FHCF) ultimate loss from 2017’s hurricane Irma has continued to creep higher in 2020, rising from $6 billion booked at the end of 2019 to $6.5 billion as of October 2020.

Loss creep from 2017’s hurricane Irma may accelerate over the next few months as the statute of limitations for filing claims approaches in September, rating agency A.M. Best warned today.

Finally, the Florida Office of Insurance Regulation (FLOIR) has updated its published data on claims paid by the insurance market due to 2017’s hurricane Irma, with the total jumping significantly to just over $17.44 billion.

In the final quarter of 2019 Florida’s primary insurance carriers continued to add to their ultimate net losses from 2017’s hurricane Irma, demonstrating that the loss creep continued more than two years after the catastrophe event.

Loss creep from hurricane Irma has remained evident for the major insurers operating in Florida in the third-quarter of the year, but the impact to reinsurance markets is slowing and the Florida Hurricane Catastrophe Fund (FHCF) has been soaking up much of the new claims inflation, at least from larger players.

Another $100 million tranche of Florida focused property and casualty insurer Heritage Insurance Holdings, Inc’s Citrus Re Ltd. catastrophe bond tranches looks to have paid out, as the cat bond note balance went to zero and the extended tranche was allowed to mature.

Safepoint Insurance Company’s 2016 Manatee Re catastrophe bond has been matured, which we’re told allowed the $20 million reinsurance recovery to be made so investors could realise their losses from the hurricane Irma impacted Manatee Re 2016-1 Class C notes.

Some of Florida focused property and casualty insurer Heritage Insurance Holdings, Inc’s Citrus Re Ltd. catastrophe bond tranches appear to be paying out, following the rising losses the carrier suffered after hurricane Irma in 2017.