Hurricane

The reinsurer emphasised the need for improved secondary peril models including predictive capabilities.

The year 2005, which featured the devastating Hurricane Katrina, remains the most expensive storm season.

2022 was a near-average season in terms of the number of storms, but featured an unusually quiet start in August, followed by two Florida hurricanes, including one of the US’s most expensive.

Frontier Advisors said sentiment continues to be challenged by performance.

The pay-out figure has nearly doubled over the last two weeks.

The Canadian investment fund now owns almost 3.8 million shares of the personal lines insurer, compared to 281,773 in Q2.

Initial loss estimates for the last quarter show lower hits to equity than observed after hurricanes Harvey, Irma and Maria five years ago.

The two insurers are believed to provide in excess of 20% of the cat MGA’s capacity.

The market share for the storm of 3%-5% is below syndicates’ historical average for US wind events.

Most claims so far have been for damage to residential property.

The CEO emphasized that the estimate is a modeled estimate and does not include litigation or inflationary pressures.

The modeller also said that losses to the National Flood Insurance Program will likely remain under $300mn.