Saturday, September 16, 2017

Florida Hurricane Exposure in Tri-county Area

Check this out:
It says that insured losses from Hurricane Andrew would have been 3x more if it just struck 20 miles further north (directly over Miami).

Now check this out:
Press release says HRTG would only exhaust 30% of their reinsurance if Hurricane Andrew were to strike again.  However, if Irma had struck Miami directly as a Category 4 as projected by the NHC on September 7th, Irma would have bankrupted HRTG.

Next link:
HRTG and UVE both have approximately 40% of their TIV (total insured valued) in the Tri-county area of Miami-Dade, Broward, and Palm Beach counties.  Even though UVE has approximately the same ratio of reinsurance to insured value as HRTG, I judge UVE to be worse than HRTG because the ratio of TIV/polices is lower.

1Q17 Tri-county Exposure

TIV/Policies is a very rough measure of value of the structures insured.  
Older low-value structures are more vulnerable to be damaged during hurricanes.

HTRG and UVE will go bankrupt if a repeat of Hurricane Andrew were to strike 20 miles north, or a repeat of the 1926 Miami Hurricane were to occur.  I have not researched the other companies in the table, but the link below indicates HCI goes bankrupt too.

https://seekingalpha.com/article/4108989-hci-group-dodges-another-bullet?app=1&auth_param=l967:1cservd:3c63724ccb8c912623ed087a6d452fd5&uprof=45#alt2

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