Hurricane
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The uplift in insured losses would be much lower due to underinsurance for storm surge and flooding damage. -
Cat losses will cost up to $80mn, down from last year’s $140mn, as the carrier indicated underlying results continued to improve in Q4.
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Citizens projected it would cede $94mn in storm losses to reinsurers but has cut this to $62mn.
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Hurricanes during the second half of 2020 have worsened the insurer’s risk-adjusted capitalization.
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The reinsurer anticipates a $175mn hit from Covid-19 claims during the quarter.
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The insurer appears to have dropped a separate $30mn aggregate minor-perils collateralised cover that had taken losses.
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The year was marked by record North Atlantic storms, which put the loss tally more than 40% ahead of mild 2019 experience.
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Defence costs are expected to remain elevated, as weather losses have also weighed on results.
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A recent stress test found that Bermudian carriers pared back their reliance on reinsurance since 2018.
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HCI is offering $5.2mn in stock plus up to $3.1mn cash for the portfolio.
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Claims arose from events including Hurricane Delta, Hurricane Zeta and Tropical Storm Eta.
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Natural catastrophe losses were up 40% year-on-year to $76bn, 7% above the 10-year average.
