Florida based primary insurer FedNat has estimated that catastrophe weather losses incurred during the fourth quarter of 2021 will reduce its net income for the period by approximately $8 million.
This figure is net of reinsurance recoveries and other offsets including affiliated fees, on both a pre-tax and after-tax basis.
Catastrophe weather losses in the quarter were driven primarily by seven notable storms that impacted Florida, Texas and Louisiana, FedNat explained.
Approximately $3 million of these net catastrophe losses are related to books of business that the company is in the process of running off, including FedNat Insurance Company’s non-Florida book as well as Maison Insurance Company’s book of business.
FedNat also recorded $4 million of reserve strengthening, net of reinsurance recoveries and other offsets including affiliated fees, related to September 30, 2021 and prior accident quarters.
This strengthening related primarily to the multiple hurricanes that occurred in the second half of 2020 and additional net retention of losses therefrom related to gaps in excess-of-loss reinsurance coverages during the 2020-2021 treaty year.
