HCI expects to pay up to $750m to policyholders from hurricanes Debby, Helene & Milton

Insurer HCI Group expects to pay between $600 million and $750 million to policyholders across all three events, with net retained losses for the company far lower at around $185 million as a result of its comprehensive reinsurance arrangements.

The property and casualty insurer has provided an update on the hurricane season and impacts to the firm in the third and fourth quarter, following the Florida landfalls of Debby, Helene, and Milton.

“Our policyholders have experienced three major catastrophe events over the past few months. We are responding to the needs of our policyholders and ensuring that their claims are handled quickly and efficiently.

“Across all three events, HCI expects to pay $600 to $750 million to our policyholders to help them rebuild their lives,” said Chairman and Chief Executive Officer, Paresh Patel.

For hurricanes Debby and Helene, HCI estimates a net expense in Q3 2024 of approximately $60 million, after the consideration of reinsurance recoveries and the reversal of benefits accrued under a multi-year reinsurance agreement. Including this loss, the company still expects to report a pre-tax profit for the quarter.

For Hurricane Milton, again after considering reinsurance recoveries and the reversal of benefits accrued under a multi-year reinsurance agreement, HCI expects a net expense to the company of approximately $125 million.

Patel added, “The company is able to absorb these losses because of our strong balance sheet, our conservative reinsurance program with over $2 billion of occurrence reinsurance limit and over $3 billion of aggregate reinsurance limit, and our profitability.

“We are continuing our participation in Citizens’ Depopulation Program in the fourth quarter and early indications show a strong rate of adoption.”

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