Nationwide Estimates Florida Hurricane Losses at $850 Million Pre-Tax

November 15, 2004

Ohio-based Nationwide Mutual Insurance Company and its P/C affiliates have issued an estimate of the losses and loss adjustment expenses from Hurricanes Charley, Frances, Ivan, and Jeanne of approximately $850 million on a pre-tax basis ($550 million on a post-tax basis). The figures are net of reinsurance recoveries, from the Florida Hurricane Catastrophe Fund.

Nationwide and its affiliates have received more than 119,500 storm-related claims since the first of four major hurricanes struck on August 13, 2004. “We’ve had our claims teams on the ground since Charley hit Florida in August, and our teams will stay until the job is finished,” stated Ken Enscoe, Nationwide’s director of catastrophe claims operations. He also noted that Nationwide continues to receive about 1,000 new claims calls per week from these events. To date, Nationwide policyholders have reported 1,570 large loss homeowners claims — losses of $50,000 or more — and over 84,000 homeowners claims.

“As we do each year, we included a provision for hurricane losses and loss adjustment expenses in our planned results,” noted Kelly Hamilton, senior VP-finance. “While we didn’t anticipate four large hurricanes, strong performance in our underlying results and favorable non-hurricane weather have helped offset the impact of the hurricanes.”

Nationwide said its response to the hurricanes was the largest catastrophe team mobilization in company history, involving nearly 1,800 associates in the field. Enscoe indicated that the massive mobilization has allowed Nationwide to close a large percentage of claims and that remaining claims will be closed as soon as possible.

“The overwhelming majority of projected losses are in Florida, where Nationwide has received more than 93,500 claims,” said the bulletin. “Nationwide is the state’s third-largest property insurer, according to the Florida Office of Insurance Regulation Web site, and insures more than 300,000 homes and nearly 305,000 vehicles in Florida.”

Topics Catastrophe Natural Disasters Claims Florida Profit Loss Hurricane

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