Reinsurance News

Heavy Ida losses to trigger Progressive’s reinsurance recoveries

17th September 2021 - Author: Charlie Wood

The Progressive Corporation has confirmed the triggering of its excess-of-loss reinsurance cover as a result of losses incurred by hurricane Ida.

The insurer notes Ida has so-far driven reported and IBNR losses of $510 million across the US Gulf Coast and Northeast.

progressive-corporation-logoIda made landfall as a 150 mph Category 4 storm near Port Fourchon, Louisiana on August 29 before causing extensive wind, storm surge and inland flood damage across the Southeast.

Finally, its remnants later resulted in exceptional flash flood damage and convective storm impacts in the Mid-Atlantic and Northeast on September 1.

According to data outlined in its August results, Progressive shouldered losses of $341.9 million as a result of Ida’s devastation, amounting to 9.7 loss ratio points.


A combined ratio of 225.7% was reported within its property insurance segment, while the firm’s net catastrophe loss ratio stands at 130.8%.

Progressive states that it has retained $180 million of losses and $20 million of allocated loss adjustment expenses within its property insurance business.

This excess was however covered under the carrier’s per-occurrence excess-of-loss reinsurance program.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
In order for FedNat to maintain its rating, it must continue to raise capital: FedNat’s Simberg

FedNat Holding Company has provided an update on the activities of its Strategic Review Committee (SRc), which was formed last...