Hurricane Dorian could cost insurers $4.5B
Hurricane Dorian has yet to make landfall as it curves along the Eastern seaboard, but that doesn’t mean it’s not leaving a path of destruction in its wake.
“Dorian’s projected path is remarkably similar to that of Hurricane Matthew,” wrote New York-based analysts at UBS. “According to Aon, insured losses from Matthew were $4.5 billion (including NFIP claims).”
Dorian, which has killed 20 people in the Bahamas, is hovering east of Charleston, South Carolina, and could dump up to 20 inches of rain on the surrounding areas. Dorian could eventually make landfall before skirting past Cape Hatteras, North Carolina, according to the National Hurricane Center.
State Farm, which has $1.74 billion worth of business in Dorian's path, has the most exposure to homeowner claims in Georgia and the Carolinas, but it’s the insurers Allstate ($758 million) and Travelers ($379.5 million) that have the most at stake in UBS’ coverage universe.
In 2016, Hurricane Matthew caused less than $180 million in damage for Allstate and less than $100 million for Travelers.
Earlier this week, UBS predicted the insurance industry would take a $25 billion hit if Hurricane Dorian made landfall in Florida.
