18 September 2018Insurance

FedNat estimates Hurricane Florence loss at $4m

FedNat currently estimates that its aggregate gross liabilities as a result of Hurricane Florence will be $4 million based on preliminary post-landfall catastrophe model estimates.

“This estimate is well within our current non-Florida property catastrophe excess of loss first event reinsurance retention of $15 million,” the company noted. “Further, any aggregate gross liabilities from hurricane Florence will be reduced by 50 percent after taking into account the profit-sharing agreement that FedNat has with the nonaffiliated managing general underwriter that writes our non-Florida property business thereby decreasing FedNat's estimated exposure to $2 million,” the company added.

On Friday morning, Sept. 14, 2018, hurricane Florence made landfall near Wilmington, North Carolina, as a category 1 hurricane and then moved slowly into South Carolina as a tropical storm. FedNat Holding Company has two insurance subsidiaries: FedNat Insurance Company and Monarch National Insurance Company. FedNat writes a small book of homeowners’ insurance in South Carolina, but has no exposure in North Carolina. Monarch National has no exposure to hurricane Florence as they currently write homeowners’ insurance only in Florida.

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