INSURERS FACE UP TO $20BN LOSS FROM TEXAS BIG FREEZE

Insurers in the US are expected to face losses of between $10bn and $20bn from the Texas winter storms, according to Fitch Ratings. Last week, the extreme cold temperatures and ice generated numerous claims from frozen and burst pipes, roof damage, power outages and lost business income that will “pressure near-term insurer results” in Texas, Louisiana and other southern states, the rating agency said. According to the Texas Insurance Department, homeowners in the affected region have policies worth more than $10bn in annual written premiums. Insurers with large homeowners' books and motor business books are to take most of the hit, Fitch said. Meanwhile, Enki Research catastrophe modeler Chuck Watson has estimated total economic losses from the Texas deep freeze at $80bn to $90bn, including $45bn from the impact on governmental accounts and disruptions to supply chains and around $35bn from physical damage, including water damage from burst pipes.