The National Security Group (NSG) has released preliminary estimates of insured catastrophe losses from Hurricanes Sally and Delta. This comes along with updated estimates of catastrophe losses from Hurricane Laura incurred by property and casualty subsidiary National Security Fire & Casualty.
When Hurricane Sally made landfall on Gulf shores, Alabama in September, it came under a category 2 storm, with maximum sustained winds of 105 mph at landfall.
The hurricane was the eighth tropical cyclone in the 2020 Atlantic hurricane season to impact the continental U.S.
NSG has said that the pre-tax loss due to Hurricane Sally is expected to be $2,000,000, net of recoveries under our catastrophe aggregate reinsurance.
Net of tax, Hurricane Sally will reduce its 2020 earnings by $1,580,000 and will reduce earnings per share by $0.62.
The impact of Hurricane Sally will be reflected in NSG’s Q3 financial results. To date, it has had approximately 600 claims reported from Hurricane Sally with approximately 90% of total claims from this event incurred by our Alabama policyholders.
NSG is revising its estimate of gross losses due to Hurricane Laura. This revision to gross losses (before reinsurance) is being made following more detailed analysis of reported claims and is primarily due to much higher damage severity to risks, particularly mobile homes, located in areas exposed to Hurricane Laura’s category 3 and 4 winds.
To date, Hurricane Laura has produced 781 claims with incurred losses exceeding $15,000,000. Approximately 90% of these claims have been reported by our Louisiana policyholders. As disclosed in NSG’s previous press release regarding Hurricane Laura, the firm’s pre-tax loss, net of reinsurance recoveries, is expected to be $2,250,000.
Net of tax, Hurricane Laura will reduce the reinsurers 2020 earnings by $1,778,000 and will reduce earnings per share by $0.70. The impact of Hurricane Laura will be reflected in the reinsurers Q3 financial results.
On October 9, 2020, Hurricane Delta made landfall near Creole, Louisiana in Cameron Parish as a category 2 storm. This was the second hurricane landfall in Cameron Parish in 2020 as Hurricane Laura made landfall less than 15 miles west in late August.
Hurricane Delta had maximum sustained winds of 100 mph at landfall and was a record tenth tropical cyclone to impact the continental U.S. during the 2020 Atlantic hurricane season.
NSG will need to establish an estimated range of gross insured losses from Hurricane Delta after it has had an opportunity to review post event models and initial claim reports.
Net of reinsurance recoveries, the reinsurer is expecting pre-tax losses from Hurricane Delta to be in the range of $2,500,000 to $3,500,000. Losses from Hurricane Delta will be reflected in its Q4 financial results.