Florida-based FedNat Holding Company has estimated that catastrophe losses incurred during the second quarter of 2019 will reduce its pre-tax income by $9.3 million.
The company also revealed that it gross catastrophe losses for Q2 amounted to $17.0 million, including $15.5 million from its non-Florida property business.
FedNat is not currently anticipating that any of the individual catastrophe events will trigger its reinsurance protection, which provides coverage for non-Florida events exceeding $15 million and Florida losses exceeding $20 million.
The retention amount is $3 million for Monarch National Insurance Company’s business, which is all within the state of Florida.
FedNat explained that its non-Florida losses are subject to a 50% profit-sharing agreement with the non-affiliated general underwriter that writes FedNat Insurance Company’s (FNIC) non-Florida property business.
These catastrophe losses consisted of hail and wind related storms from twelve catastrophe events during Q2, which were catalogued by Property Claim Services in the states FedNat writes property business.
FedNat announced that it had modestly grown its catastrophe reinsurance program at the recent July renewals, increasing its aggregate reinsurance limit from $1.79 billion to $1.84 billion.