KBRA Releases Research Report: The Nature of Catastrophic Flooding and the Effects of Hurricane Harvey

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) expects Hurricane Harvey will have a modest impact to underwriting results to those insurers exposed to the region in the coming quarters. In the report, KBRA provides historical context to the event along with dialogue on the initial loss estimates and how these losses may be covered. Given this is an ongoing event, many details and the scope of damage is still yet unknown with recoverable losses likely to be spread across the insurance sector, both primary and reinsurance carriers, in addition to government instrumentalities (NFIP and FEMA).

As a result of the effects of Hurricane Harvey, there is unlikely to be any significant changes to the capitalization of the overall U.S. property casualty (P/C) insurance market and muted primary pricing impact due to the current surplus levels across the industry. In the midst of the busiest period of hurricane season, and with three months remaining in the 2017 season, KBRA notes that a second material event could further highlight strong and weak reinsurance programs. Additionally, KBRA doesn’t anticipate negative rating actions to the KBRA-rated universe of insurance companies and further opines that the P/C insurance market is adequately positioned to absorb losses, given current capitalization levels and loss estimates.

Please click here to read the report.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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Analytical:

Kroll Bond Rating Agency

Patrick Curboy, 646-731-2371

Senior Analyst

[email protected]

or

Fred DeLeon, 646-731-2352

Director

[email protected]

or

Carol Pierce, 646-731-3307

Director

[email protected]

or

Andrew Edelsberg, 646-731-2371

Managing Director

[email protected]

or

Van Hesser, 646-731-2305

Senior Managing Director

[email protected]

Source: Kroll Bond Rating Agency