Florida-focused insurers recover as losses from Hurricane Milton in focus

Heritage Insurance Holdings

10/10/2024 13:45

** Shares of Florida-focused insurers jump premarket after
Hurricane Milton makes landfall on Florida's west coast 
    ** Heritage Insurance  HRTG.N , Universal Insurance  UVE.N ,
and American Coastal Insurance  ACIC.O  up 7.8%, 9.2% and 7.8%,
respectively
    ** Milton made landfall on Wednesday destroying homes and
knocking out power to more than 3 mln people
    ** Citi analyst James Shuck said late Wednesday the best
guess for insured losses is now around the $50 bln mark, adding
that this is better than feared as Milton avoids Tampa Bay
directly
    ** Prior to its landfall, analysts had expected Milton could
lead to losses of up to $100 bln for the global insurance
industry, and result in a jump in 2025 reinsurance prices
    ** Shuck added that the Florida Hurricane Catastrophe Fund
(FHCF) will probably not recover from Milton and ultimately a
federal solution will be needed
    ** FHCF is a state trust fund that reimburses residential
property insurance companies a portion of their catastrophic
hurricane losses in Florida

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))