FHCF FACES UP TO $6BN LOSS FROM HURRICANE IRMA

Florida property reinsurer Florida Hurricane Catastrophe Fund faces $3bn to $6bn in losses from hurricane Irma, artemis.bm has reported, citing figures from FHCF consulting actuary Paragon Strategic Solutions. Paragon said that a conservative estimate of FHCF losses would be around $5.1bn. The loss is preliminary and may differ materially from actual losses. However, even with $5.1bn in losses from Irma, the FHCF would still have around $21.5bn in claims-paying capacity, well above its mandated minimum of $11.9bn. It remains unclear whether Irma-related losses will prompt the FHCF to boost its risk transfer programme for 2018 when it comes up for renewal at mid-year. Total insured losses from Irma’s impact in Florida are expected to be around $28bn, according to the mid-point of modelled estimates from AIR Worldwide and RMS.