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Best's Briefing: Insurers Equipped to Handle Hurricane Lane Losses

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A.M. Best expects that Hurricane Lane, which buffeted Hawaii,
will be considered more of a flood event than a wind event, and as a
result, bring a potential triggering of the National Flood Insurance
Program's reinsurance program into consideration.

A new Best's Briefing, "Insurers Equipped to Handle Hurricane
Lane Losses," states that most A.M. Best-rated Hawaiian insurers exposed
to property catastrophe risk, based on direct premiums written in
Hawaii, have diverse geographic footprints and possess risk-adjusted
capitalization supportive of their current ratings. Therefore, A.M. Best
does not anticipate significant decreases in policyholders' surplus at
affected rated companies, or any rating actions. However, rated entities
that display any material deviations from expected results potentially
could be the subject of negative rating action in the form of under
reviews, outlook revisions or downgrades.

The National Flood Insurance Program has approximately 60,000 policies
in force, according to FEMA. Should the beleaguered U.S. flood program's
reinsurance layer pay out because of Hurricane Lane, along with other
recent and prospective events, it would be the second-straight year the
placement was triggered. Because of the flooding, which exceeded 50
inches in some parts of Hawaii. A.M. Best expects the storm generated
comprehensive claims for auto insurers as well.

To access the full copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=277468.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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