tropical storm Francine 2024

U.S. private market onshore and offshore insurance industry losses from hurricane Francine have been estimated at less than $2 billion by Moody’s RMS Event Response, with losses to the National Flood Insurance Program (NFIP) expected to be under $200 million.

Private insurance market losses from recent hurricane Francine have been initially estimated as close to $1.5 billion by catastrophe risk modelling specialist Karen Clark & Company (KCC).

Hurricane Francine’s losses after its landfall in Louisiana are not anticipated to cause any losses to per-occurrence catastrophe bonds, but the losses may be sufficient to cause further attrition for aggregate cat bonds, resulting in a further erosion of the deductibles that sit beneath their attachment points, according to Twelve Capital.

Early estimates of insurance industry losses for hurricane Francine are coalescing around the $1 billion mark to a maximum $3 billion, with the majority expected to fall to primary insurers with larger footprints in Louisiana.

According to equity analysts at RBC Capital Markets, hurricane Francine is expected to be a manageable loss for the property and casualty insurance industry, while little in the way of loss impact is expected for the reinsurance market.

Francine was upgraded to a hurricane last night and the sixth named storm of the 2024 Atlantic hurricane season has strengthened to sustained winds of 100 mph and now heads for landfall in Louisiana, where reinsurance broker Gallagher Re anticipates insured losses in the low single digit billions of dollars.