Reinsurers will cover the brunt of Farmers Insurance’s Hurricane Harvey and Irma losses, with a total of about $500 million in claims recoverable under the firm’s reinsurance programme.
The carrier said it expects Hurricane Irma claims to reach about $140 million – which is fully recoverable by reinsurance – Farmers Insurance has already received 16,000 Hurricane Irma claims and expects this figure to reach 24,000 claims.
Hurricane Harvey losses are significantly higher, with the event having generated over 40,000 claims so far and this being estimated to grow to 60,000 claims, costing a gross $500 million.
After reinsurance and taxes, Farmers estimates that its net incurred loss will be $140 million.
“Farmers Insurance claims staff make our customers their top priority and take pride in their ability to help them work through the claims handling process,” said Keith Daly, chief claims officer for Farmers Insurance, “our staff is working hard to put customers on the road to recovery as fast as possible.”