Fitch Ratings Inc. said on Tuesday that although it currently has a stable rating outlook for the real estate / accident sector and the global reinsurance sectors, above-average hurricane season losses may change that on average.
Fitch said that although "accelerating" changes in real estate premiums promote the improvement of underlying performance in the sector, "and" the industry's capital strength is still very strong … a confluence of major events can lead to capital reductions and credit pressures. "Landfall in 2021 given storm season predictions. Six storms landed on the U.S. Atlantic or Gulf Coast at hurricane intensity 2020," Fitch said, most since 2005, and Hurricane Laura was the most destructive storm of 2020, causing an estimated $ 1
The largest authors of commercial lines coverage in Florida is Zurich Insurance Group Ltd., Citizens Property Insurance Corp. in Florida and American International Group Inc., according to Fitch data. bonds have not declined. ”The report said that sixteen emergency bonds issued under SEC Rule 144A with named storm risk as a trigger of a total of $ 5.2 billion was issued or is expected to be issued s since the beginning of 2021, according to the Artemis Deal Directory.
The report states that storm coverage in Florida is largely due to available reinsurance. The three largest insurers of Florida homeowners risk being the Florida Hurricane Catastrophe Fund, Berkshire Hathaway Inc. and Lloyd & # 39 ;s of London, according to Fitch.