Hurricane Michael should have “little impact” on property reinsurance pricing trends, according to an industry update issued Tuesday by investment banking firm Keefe Bruyette & Woods Inc.
The National Hurricane Center currently expects to make Michael to make landfall Wednesday as a major hurricane with windspeeds of over 110 miles per hour, noted Meyer Shields, managing director at KBW in Baltimore, in the industry update.
Storm ”modest exposure (property / casualties) insurance companies and reinsurers – Florida’s fragmented personal property market has been heavily re-insured at relatively low ports – today, Fır he wrote. ”While we don’t have a reliable estimate yet, we expect the sector’s total insured losses to be manageable with little impact on the pricing trends of property reinsurance.“
A.M. Best Co. Inc., the United Insurance Group, accounted for 16.19% of the commercial multi-sector insurance market in Florida, with the Zurich Financial Services Group N.A. followed by Heritage Insurance Holdings Group with 6.23%. In Alabama, where it is expected to be affected by hurricane, Travelers Cos. Inc., led the commercial multi-sector insurance market with 10.0%. This was followed by Cincinnati Insurance Cos with 7.50% and Nationwide Group in 7.47%.
Legal warning !
The information, comments and suggestions there are not covered by investment advice. It is based on the author's personal opinions. These views may not fit your financial situation and risk and return preferences. For this reason, based solely on this information, investment decisions may not have the appropriate consequences for your expectation. Our Site is not responsible for any direct or indirect damages incurred by the investors as a result of the use of the information on the Site, deficiencies in the sources, damages incurred by profit, moral damages, or damage to third parties.