More loss and claim estimates are trickling in from airlines this month after Hurricane Milton caused widespread wind and flood damage in Florida.
Tampa-based Heritage Insurance Holdings said in a preliminary statement that Heritage General Insurance Company received 5,435 claims about two weeks after the Milton made landfall on Oct. 9. This is about half the number seen during the same period following further vandalism. In 2022, Hurricane Ian hit Florida.
The insurer expects to incur approximately $57 million in catastrophe losses from Milton in the fourth quarter of 2024. Heritage noted that this year’s last two hurricanes, Debbie and Helen, cost the company approximately $48 million in disaster losses in the third quarter.
Despite the impact of the hurricane, the company expects to be profitable in the third quarter of 2024. Estimates for hurricane insurance claims were not available. More complete financial data for the third quarter is expected to be released during the company’s earnings call on November 6th.
We expect total losses from Hurricane Milton to begin at $450 million and reach $914 million, likely reaching the third tier of our reinsurance tower.
“Overall, we are in a strong financial position, supported by a $1.3 billion reinsurance tower,” CEO Ernie Galatics said in a statement. “We expect total losses from Hurricane Milton to start at $450 million and reach $914 million, likely reaching the third tier of our reinsurance tower.”
He added that the company’s efforts over the past three years have helped mitigate losses from significant events, including the three recent hurricanes. These measures include higher interest rates, exposure management, and underwriting discipline.
In recent years, the impact of legacies has been partially reduced by reducing the number of insurance policies. Florida had 142,591 insurance policies in the second quarter of this year, a 14% decrease compared to the same period in 2023, according to the holding company’s 10th quarter quarterly report dated June 30. The number of insurance policies was 277,653, which also decreased by 14% from the same period last year.
The company’s total insurance coverage in Florida was $104 billion as of the second quarter of this year. Heritage reported net income of $18.9 million for the second quarter of this year, double the profit level for the same quarter in 2023.
Arashi’s financial position is comparable to that of HCI, the parent company of Homeowner’s Choice Insurance, also based in Tampa. HCI said in mid-October that it expected to incur costs of approximately $60 million in the third quarter and $125 million in the fourth quarter as a result of the hurricane. HCI Insurance Company manages approximately 242,500 insurance policies in several states, including Florida.
Overall, Florida insurance companies reported more than 237,230 claims as of Wednesday in the wake of Hurricane Milton, according to the Florida Department of Insurance Regulation. Insured losses to date are estimated at approximately $2.8 billion, and this number is likely to increase as claims increase.
Citizens Property Insurance Corporation, Florida’s largest insurance company with more than 1.2 million policies, reported 41,402 claims from Milton as of Oct. 21.
Photo: Destruction of Milton in Grove City, Florida. (AP Photo/Rebecca Blackwell)
Topics Lost Profit Claims in Florida
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