HCI Group, Inc. expects claims and resulting pre-tax gross losses from the impacts of Hurricane Idalia to be within the reinsurance retention limits for both Homeowners Choice Property & Casualty Insurance Company and TypTap Insurance Company.
Hurricane Idalia made landfall in Keaton Beach, Florida as a Category 3 storm on August 30, 2023.
Given the landfall location, which is far less densely populated than other parts of the Florida coast, the ultimate insured loss is expected to be far lower than initially feared.
HCI says that Idalia is not expected to require the company to utilize any of the capacity in either of its reinsurance towers.
It’s likely this will be the case for many insurers, which supports commentary from analysts that Idalia will be an earnings event for insurers.
Paresh Patel, HCI’s Chairman and Chief Executive Officer, commented, “Our thoughts go out to all who have been affected by this hurricane. Our focus at this time is on our policyholders and ensuring their claims are handled quickly and efficiently.”