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.
Ida 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.
