Travelers estimates up to $175m in hurricane Milton losses

Between $75 and $175 million of Hurricane Milton-related pre-tax losses, net of reinsurance, are estimated to impact Travelers’ future natural catastrophe losses, the US insurer revealed following the announcement of its financial results for the third quarter of 2024.

These figures did not impact Travelers Q3 results and are preliminary estimates as it is still early days in terms of assessing ultimate losses, Executive Vice President and Chief Financial Officer, Dan Frey noted.

For this year’s Q3 the insurer reported an underwriting gain of $685 million despite a rise in pre-tax cat losses, net of reinsurance, to $939 million.

According to Travelers, more than half of this quarter’s nat cat losses relate to Hurricane Helene, a devastating storm which made landfall in the last few days of the quarter.

Helene and Milton were the fourth and fifth hurricanes to make landfall in the US during the 2024 Atlantic hurricane season, impacting many of the same regions with damaging wind, storm surge, and inland flooding.

A Category 4 storm with 140 mph winds, Helene made landfall near the city of Perry in the Big Bend Region of Florida on September 26, bringing strong winds, severe storm surge, and catastrophic inland flooding.

For Travelers the financial impact of Helene was greater in Georgia and the Carolinas than in Florida.

Milton made landfall on October 9 in Sarasota County (Siesta Key) on the east coast of Florida as a Category 3 hurricane, bringing strong winds, heavy rainfall, tornadoes, and storm surges, which resulted in loss of life, damage to property and infrastructure, and power outages.

Despite the impact the hurricanes have had in the industry, Travelers expects its renewal price change to continue to be positive and strong.

The insurer shares this sentiment regarding property pricing. Noting that it needs to be “considered together in connection with returns in the property line, as the price change in property is a reflection of the returns in that line.”

Travelers concluded: “These storms are a reminder of the potential volatility and the things that we’ve all got to be thoughtful about in committing capital to risk.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.