The calculations are made based on the expected fourth quarter profits of large insurers with exposure to Florida. If this forecast is achieved, Hurricane Milton will become the costliest storm for the sector, since what happened with Ian in 2022.
Hurricane Milton: the million-dollar losses for the insurance sector
Hurricane Milton is the fifth phenomenon of its kind to hit the US Gulf of Mexico coast this year, and the second major storm, in the middle of the hurricane season in the United States, which occurs between the months of June and November.
Milton made landfall on the west coast of Florida on Wednesday night as a Category 3 hurricane – on a scale of 5 – and made its way strongly into the interior of the state, before reaching the Atlantic on Thursday. At times, this “monster”, as described by numerous meteorologists, the climatic phenomenon reached the category 5the maximum measurement.
In this context, the hurricane caused destruction in various areas of Florida. Thousands of people had their assets affected by destruction of houses or vehicles. Furthermore, Milton’s passing left more than 3 million people without electricity and caused widespread flooding.
In this way, according to a study in the Fitch Ratings report, Milton is expected to cause losses covered by insurers that range between US$30,000 million and US$50,000 million. The storm will affect the profits of the fourth quarter of large insurers with exposure to Florida. Although it could also have an impact on the reinsurance sector, Fitch does not expect the hurricane to harm the credit of large firms insurance or reinsurance, thanks to its “very strong capital levels“.
Florida devastated by Hurricane Milton
At least 16 people died after the passage of Hurricane Milton that caused tornadoes in the state of Florida, local officials reported Thursday, while the region continues to deal with the ravages of a storm that, despite its great power, was less catastrophic than feared. The passage of the climate phenomenon devastated the center of the state of Florida from east to west on Wednesday nightcausing floods and deadly tornadoestwo weeks after the passage of another devastating cyclone.
According to local authorities, there were five deaths in St. Lucie Countythree in Volusia, two in the city of St.Petersburg and a in the city of tampa. The Secretary of Homeland Security, Alejandro Mayorkasdetailed to reporters that the deaths were caused by the tornadoes.
Milton also “caused flooding in places like Daytona Beach and Saint Augustine,” on the peninsula’s east coast, the Florida governor added. Ron DeSantis. It also caused havoc in the heart of Florida, such as in Orlando, where the theme parks of Disney World they remained closed as a precaution.
However, the worst-case scenario appears to have been avoided, especially on the West Coast. “The sea submergence was not as significant as during Hurricane Helene a few weeks ago,” DeSantis detailed, noting that Milton had decreased in intensity and changed course slightly before making landfall.
More than 3.3 million Florida homes were without power Thursday morning, according to the specialized website poweroutage.us. Although it has left the peninsula, the hurricane continues to generate powerful winds and “heavy rains” over central and eastern Florida, warned the United States National Hurricane Center (NHC).
Source: Ambito
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