Insurance holding company The National Security Group is expecting a $9.7 million catastrophe hit in the second quarter.
During the period NSFC was negatively impacted by multiple severe weather events that contributed to elevated insured losses due to damage from strong winds, hail and tornadoes.
The company was impacted by 15 cat events which produced 1,464 reported policyholder claims.
In comparison, NSFC was impacted by 11 cat events during the second quarter of 2019 from 378 reported claims totalling $1.9 million.
April of 2020 was its most active month of any spring storm season since 2011, with six cat events occurring during the month.
These six cat events impacted policyholders in every state where NSFC operates and generated $7.8 million in insured losses during the second quarter of 2020 from 1,133 reported claims through June 30.
For comparison, in April of 2019, we incurred losses from five cat events totaling $1,092,000 from 221 reported claims.
In the first six months of 2020, NSFC had 2,002 reported claims from 20 cat events through June 30, 2020 totaling $11.9 million.
The company maintains catastrophe reinsurance coverage to mitigate loss exposure from catastrophic events.
With its 2020 catastrophe contract placement, the company’s single event catastrophe retention remained unchanged from the prior year at $4 million.
In its 2020 contract, NSFC maintained its underlying second event layer of $2 million in excess of $2 million.
