Property and auto-focused insurance coverage group, Progressive, has actually revealed a substantial increase in disaster losses for the 2nd quarter of 2023, driven by a rise in extreme weather condition occasions throughout the United States.
Progressive divulged that they were affected by an overall of 19 disastrous weather condition occasions in the 3 months ended June 30, 2023. This figure shows a minor decline from the 23 occasions reported in the matching duration of the previous year.
Similarly, the six-month information ending June 30, 2023, revealed 43 disastrous weather condition occasions compared to 34 occasions throughout the very same timeframe in 2022.
The state of Texas, Florida, and Colorado bore the force of the extreme weather condition, adding to over 50% of the overall disaster losses for the quarter.
Remarkably, regardless of these focused effects, an overall of 35 states were impacted throughout the quarter, with 44 states experiencing disastrous occasions in the very first half of 2023.
To alleviate the effect of these losses, Progressive has actually tactically participated in a brand-new aggregate excess of loss reinsurance agreement.
The reinsurance protection consists of numerous layers, with the preliminary retention limit varying from $500 million to $575 million, leaving out called hurricanes and typhoons. The subsequent retention layer has a limit of $600 million, covering called hurricanes and typhoons.
The very first and 2nd layers of protection deal security approximately $100 million and $85 million, respectively.
While Progressive presently stands listed below the yearly retention limits of its 2023 disaster aggregate excess of loss program, the business expects surpassing a part of these limits in the 3rd quarter of 2023.
Upon exceeding the retention limits, Progressive’s reinsurance protection will reach cover non-named storm property disaster losses approximately $100 million.
