Palomar estimates up to $15.5m of Q3 hurricane losses

Palomar estimates up to $15.5m of Q3 hurricane losses

Palomar Insurance Holdings, the speciality California-headquartered insurance provider that offers mostly disaster exposed property items on its own balance-sheet and also provides fronting for a growing variety of threats, expects approximately $15.5 countless catastrophe losses from the third-quarter hurricanes.The company stated that it anticipates to report pre-tax catastrophe losses of between $14.5 million and $15.5 million, net of reinsurance for the Q3 duration when it announces its results.
The losses are simply from hurricane activity during the duration, with cyclones Ida and Nicholas both driving a few of the disaster problem for the insurer.
Encouragingly for the business, the losses are mostly from lines of business it has actually now exited.
Palomar said that around 70-75% of the gross loss from these cyclone occasions hit the discontinued Admitted All Risk and Louisiana Specialty Homeowners items, both of which it stopped underwriting in the 4th quarter of 2020.
The insurance company kept in mind these price quotes undergo alter, provided the complexity of the claims involved and likewise the initial nature of the details used to prepare the estimates.
Given the comparable sizes of hurricanes Ida and Nicholas, with Ida a substantially larger market loss, while Palomars catastrophe retention for its excess of loss reinsurance tower is $12.5 million, it appears totally possible that losses from cyclone Ida may have driven a reinsurance healing for the insurance company.
The insurer had worked hard this year to change its reinsurance program to minimize its net kept losses from any significant disaster events, which with this low retention would appear to recommend that Ida might have resulted in some healings for Palomar.

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