Reinsurance rates to see ‘little impact’ from Hurricane Michael: Analyst

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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%.

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