Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

FEDNAT HOLDING COMPANY

(FNHC)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Ida's insurance impact likely to be boosted by pandemic pricing

08/30/2021 | 06:30pm EDT
Aftermath of Hurricane Ida in Louisiana

NEW YORK (Reuters) - Insurers are bracing for $15 billion to $30 billion in claims from Hurricane Ida, but the figure could jump higher, in part because of pandemic pricing that has pushed up the cost of lumber and labor to rebuild, insurance experts said on Monday.

The widely ranging estimates, based on models that track the storm's severity and path, are still likely to be less than the $87 billion in claims from Hurricane Katrina, when adjusted for inflation, experts said.

Insurance companies with significant exposure include Allstate Corp, Progressive Corp, FedNat, Chubb Ltd, American International Group Inc, Travelers Companies Inc and The Hartford, according to Piper Sandler analyst Paul Newsome.

Ida was about one category weaker than Katrina was when it made landfall 16 years ago, and that makes a large difference in its destruction and financial cost, Newsome said.

Insurers said they are asking clients about damage and poring over satellite images to assess the wind impact. But inspections are necessary to assess the amount of flooding.

"The wind damage may be more visible, but you don't know the extent of the water damage until you're actually able to inspect," said Anne Wilson, property expert for the Americas at Swiss Re AG. "You have to get eyes on the ground."

Insurance costs for residential flooding will largely be covered by the U.S. National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency (FEMA).

Commercial policies, however, will face claims for direct physical damage and also business interruption and supply chain disruption that spread beyond the disaster area, said Robert O'Brien, a managing director at the national property claims practice of Marsh & McLennan Companies Inc.

With power outages, floods, impassable roads and other impediments, production can be disrupted for weeks and can generate contingent claims by distant businesses unable to get supplies from or sell products to companies hit by the storm.

"Those involved parties could be anywhere," O'Brien said. "A local event can ripple out across the world."

Ida also likely will renew efforts to address problems with NFIP, which was launched more than 50 years ago and is $20.5 billion in debt because the premiums are too low to cover the cost of claims, said Craig Poulton, chief executive officer of Poulton Associates, which administers flood and other insurance.

"This event will serve as a reminder of the severity that storms can bring," he said.

(Reporting by Alwyn Scott; editing by Richard Pullin)

By Alwyn Scott


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
FEDNAT HOLDING COMPANY 0.20% 2.49 Delayed Quote.-58.02%
HORTIFRUT S.A. 0.59% 789.65 End-of-day quote.-23.71%
SWISS RE LTD 1.09% 81.26 Delayed Quote.-3.55%
All news about FEDNAT HOLDING COMPANY
09/20FEDNAT HOLDING COMPANY(NASDAQGM : FNHC) dropped from S&P Global BMI Index
CI
09/15FEDNAT : Strategic Review Committee Provides Update
PU
09/15FedNat Holding Provides Update on Strategic Review Committee
CI
09/15FEDNAT HOLDING CO : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
AQ
09/15FedNat's Strategic Review Committee Provides Update
GL
09/01FEDNAT HOLDING CO : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
AQ
08/30Ida's insurance impact likely to be boosted by pandemic pricing
RE
08/10SECTOR UPDATE : Financial Stocks Finishing Near Intra-Day Highs
MT
08/10SECTOR UPDATE : Financial Stocks Advancing Tuesday Afternoon
MT
08/10FEDNAT : Posts Wider Q2 Adjusted Loss as Revenue Declines; Shares Slip Over 14%
MT
More news
Analyst Recommendations on FEDNAT HOLDING COMPANY
More recommendations
Financials (USD)
Sales 2021 282 M - -
Net income 2021 -67,3 M - -
Net Debt 2021 - - -
P/E ratio 2021 -0,62x
Yield 2021 -
Capitalization 43,3 M 43,3 M -
Capi. / Sales 2021 0,15x
Capi. / Sales 2022 0,13x
Nbr of Employees 377
Free-Float 75,3%
Chart FEDNAT HOLDING COMPANY
Duration : Period :
FedNat Holding Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FEDNAT HOLDING COMPANY
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 2
Last Close Price 2,49 $
Average target price 3,75 $
Spread / Average Target 50,6%
EPS Revisions
Managers and Directors
Michael H. Braun President, Chief Executive Officer & Director
Ronald A. Jordan Chief Financial Officer
Bruce F. Simberg Chairman
Patrick S. McCahill Chief Operating Officer
Jenifer G. Kimbrough Independent Director
Sector and Competitors
1st jan.Capi. (M$)
FEDNAT HOLDING COMPANY-57.77%43
AMERICAN INTERNATIONAL GROUP, INC.52.59%49 405
THE TRAVELERS COMPANIES11.41%39 093
THE ALLSTATE CORPORATION15.36%37 495
TOKIO MARINE HOLDINGS, INC.15.92%36 348
SAMPO OYJ32.11%29 340