Fitch Ratings Expects Low Losses From Hurricane Lili

Fitch Ratings announced the release of a special report titled, “Hurricane Lili: Storm Weakens before Landfall, Low Insured Losses Expected as a Result,” which predicts damages from the hurricane will not represent a material loss to the overall insurance industry.

Though at one point a Category 4 hurricane, the storm significantly diminished in intensity before making landfall in a relatively sparsely populated area of Louisiana. The major catastrophe modelers have issued preliminary insured loss estimates in the $500 to $600 million range.

The insurers with significant market shares in the insurance lines most likely to be affected by the storm are geographically diversified in risk and generally have high insurer financial strength ratings that are not likely to be affected by storm losses of this magnitude.

Fitch added that while it is possible that an insurer with a geographical concentration of risk in Louisiana could be materially affected, to-date no such companies have been identified. Lili is not expected to trigger a loss to any of the catastrophe bonds in the Fitch rating universe.

The full text of the report is available on Fitch’s Web site, www.fitchratings.com.

Topics Catastrophe Natural Disasters Profit Loss Hurricane