Progressive Reports Updated Hurricane Ian property Loss Of $1 Billion
Progressive Reports Updated Hurricane Ian property Loss Of $1 Billion
The Progressive Corporation updated its report on the property damages it sustained as a result of Hurricane Ian, noting that its loss and allocated loss adjustment expenses (ALAE) are projected to total $1 billion before taking into account reinsurance.
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The company claims that this represents a $400 million improvement over its anticipated loss and an ALAE of $1.4 billion reported as of September 30, 2022.
At the time, it admitted that while more than 1,500 deployed claims agents and independent adjusters proceeded to assess claims and damages, its estimates may significantly change.
Progressive states that given that it exceeded its $200 million retention threshold under its reinsurance contracts in September, the change in estimate for the firm’s Property losses and ALAE will not impact its results of operations for December.
Progressive Reports Updated Hurricane Ian property Loss Of $1 Billion
This suggests that the firm’s reinsurance recovery will now be $800 million, compared to the previous $1.2 billion that it had been anticipating previously.
The firm notes, “We continue to evaluate and reserve for this catastrophe using our knowledge and experience of reporting patterns from many past storms, in addition to actual claims reported and assumptions specific to this hurricane.
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“As further described in our periodic reports filed with the SEC, these estimates will continue to change, favorably or unfavorably, as additional information develops, and additional claims are reported.”
It added that as of December 20, 2022, its estimate for vehicle losses, including boats and recreational vehicles, is essentially unchanged from November 2022.
Progressive Reports Updated Hurricane Ian property Loss Of $1 Billion
Meanwhile, according to a recent report from GlobalData, Progressive Corporation has overtaken State Farm to become the largest motor insurer in the US.
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The company’s growth was largely attributed to its expanding for-hire transportation business, alongside higher advertising campaigns and its affiliation with a larger number of insurance agencies.
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