Losses

Total losses for the year from April now exceed $3.5bn.

The final report said the majority of the losses occurred on Kyushu Island with 74% of the total industry loss.

According to the National Hurricane Center, Lee made landfall at Long Island, Nova Scotia, on Saturday.

Slow weakening is forecast during the next few days, but Lee is likely to remain a large and dangerous hurricane into the weekend, the update noted.

European and Bermudian reinsurers are expected to be the most favorably affected by the current environment.

Alongside a parametric scheme, a further insurance pool providing up to $1bn in cover will recoup funds to benefit the post-quake recover.

Tropical Storm Lee is set to strengthen to an “extremely dangerous” Category 4 hurricane by the end of the week, although there are no coastal watches or warnings in place as yet.

The National Flood Insurance Programme could face a loss of around $500mn from the hurricane, according to the estimate.

The analytics firm said that the majority of insured losses will be attributable to wind.

Moody’s said most losses from Idalia are likely to arise from homeowners and commercial property lines.

The storm battered large areas of the Southeast, leaving homes without power, flooding roads and damaging properties.

The latest loss estimate is little changed from those in the reinsurance broker’s pre-landfall report Tuesday and aligns with estimates from Moody’s RMS pegging Idalia as a $6.3bn loss event.

The hurricane, now a Category 1, is tracking around 100 miles west of Savannah, Georgia and is expected to pass through the Charleston area of South Carolina.

The figure – which is not a loss estimate – would be consistent with early views of a sub-$10bn insured loss.

With Hurricane Idalia’s landfall underway loss estimates are uncertain, but sources noted that the storm’s trajectory shows it taking the best path to impact minimal insured values in Florida.

The storm will weaken further, but remain a hurricane as it passes through Georgia and the Carolinas.

The update projections for wind only show a 20% likelihood of losses approaching $11.7bn.

More than 800,000 houses could be affected by the hurricane’s storm surge.

Parts of Tampa, as well as Georgia and the Carolinas, now face dangerous conditions.

If the storm steers clear of Tampa, reinsurers will be well placed for minimal losses, but a retention loss is a further blow for weak Floridians.

The storm is set to become an “extremely dangerous major hurricane” by landfall on Wednesday.

Idalia is forecast to become a hurricane later today and a dangerous major hurricane over the northeastern Gulf of Mexico by early Wednesday.

A major hurricane in any section of Florida that extends into the Southeast states is likely a “multi-billion-dollar” insurance industry event, according to the broker.

The storm is now forecast to become a major hurricane by Tuesday night. This morning’s advisory update had estimated that Idalia would reach major hurricane status by early Wednesday.