Insurer Progressive reduced its estimate of gross loss and loss adjustment expenses for vehicle and property claims related to Hurricane Ian by $400 million, pushing the total down to $1.6 billion.
Revising a September estimate of $2.0 billion, the company said that all of the reduction is in the property segment, with estimates for vehicle losses—including boats and recreational vehicles—unchanged.
Related article: Progressive Loses A Bundle: Nearly $2.0B Gross Ian Losses; $760M Net
In November, the carrier reported updated estimates of $574 million in vehicle claims and $1.4 billion in property, prior to reinsurance. Progressive retains only $200 million of the property losses under its reinsurance contracts, ceding the remaining $800 million.
“Given that we exceeded our $200 million retention threshold under our reinsurance contracts in September 2022, this change in estimate for our Property losses and ALAE will not impact our results of operations for December,” Progressive said.
“We continue to evaluate and reserve for this catastrophe using our knowledge and experience of reporting patterns from many past storms, in addition to actual claims reported and assumptions specific to this hurricane. As further described in our periodic reports filed with the SEC, these estimates will continue to change, and could change materially, favorably or unfavorably, as additional information develops, and additional claims are reported,” Progressive added in Wednesday’s statement.