HCI Group predicts it will handle between $100 million and $300 million in insured losses related to Hurricane Irma, according to preliminary estimates from the Florida-based insurer.
The losses will exceed its $16 million reinsurance retention level and trigger reinsurance recoveries, HCI said. As well, they’ll kick in the loss of accrued benefits and deferrals under retrospective provisions within reinsurance contracts. HCI’s principal operating subsidiary, Homeowners Choice Property & Casualty Insurance Company Inc. issued the loss estimates.
HCI’s captive reinsurance subsidiary, Claddaugh Casualty Insurance Company Ltd., which participates in the Homeowners Choice reinsurance program, estimates it will lose $34 million from Hurricane Irma –the total coverage it provided to Homeowners Choice.
HCI Chairman and CEO Paresh Patel said in prepared remarks that the insurer has “ample resources, including reinsurance recoveries and cash, to meet our obligations to policyholders.”
In July, HCI Group began the regulatory process to expand its private flood insurance operation into Arkansas, California, Maryland, North Carolina, New Jersey, Ohio, Pennsylvania, South Carolina and Texas.
HCI writs flood insurance for about 4,000 policies in Florida, both as an endorsement to its standard homeowners policy in its Homeowners Choice Property & Casualty Insurance Co., and as standalone coverage through its newer TypTap subsidiary – a proprietary InsurTech platform it created.
Hurricane Irma is the first major hurricane to make landfall in Florida since Hurricane Wilma in 2005.
Source: HCI Group