Financial analysis firm Demotech has compiled a list of re/insurers who are likely to face the most exposure from the recent outbreak of tornadoes that impacted Tennessee on March 3rd.
The tornadoes, which caused major damage in the state capital of Nashville, caused at least two dozen deaths and are expected to result in total property damage of more than $1 billion, according to catastrophe modeller CoreLogic.
Re/insurance broker Aon similarly said that damages will reach into the hundreds of millions of dollars, with most of the eventual cost likely to be insured.
Demotech notes that re/insurers wrote $2.1 billion of homeowners direct premium in Tennessee in 2018, as well as homeowners direct premium in Tennessee.
Using data reported to the NAIC and collected from SPGlobal, the firm has put together a list of the top 25 writers of homeowners and commercial multi-peril (non-liability) in the state of Tennessee for year-end 2018.
Although this data applies to the whole state and not just to the areas impacted by the tornadoes, Demotech believes it may provide some indication as to which companies may face the highest exposure to the outbreak.
As can be seen in the above table, State Farm Fire and Casualty Company and Tennessee Farmers Mutual Insurance Company wrote by far the most homeowners direct premium in 2018, at roughly $500 million and $409 million, respectively.
Following that was Liberty Insurance Corporation at $75.8 million, Erie Insurance Company at $73.7 million, and Allstate Vehicle and Property Insurance Company at $67.3 million.
In terms of commercial multi-peril premiums, Erie Insurance Exchange and Cincinnati Insurance Company wrote the most business in Tennessee in 2018, at $37.0 million and $27.3 million, respectively.
After this was State Farm Fire and Casualty Company at $21.8 million, Owners Insurance Company at $18.8 million, and Philadelphia Indemnity Insurance Company at $12.6 million.
“Carriers writing homeowners or commercial multi-peril insurance are paid to step up when tornadoes strike,” commented Joseph L. Petrelli, President, Demotech. Inc.
“Our review of the top twenty-five insurers in Tennessee writing each line of insurance leads Demotech to believe that meritorious claims associated with the damage and destruction to homes and buildings will be settled professional and promptly,” he continued.
“We extend our condolences to the families and friends of those who lost their lives on March 3rd.”
