Hawaii wildfire loss could cost property insurers between $1bn and $3.2bn
The deadly wildfire that devastated the historic town of Lahaina in Maui, Hawaii has caused at least $1 billion in insured property losses, Moody’s rating agency has said.
Karen Carpenter & Co has meanwhile estimated the insured property loss at $3.2 billion.
Moody’s said an estimated 2,207 structured were damaged or destroyed and a further 2,719 structures were exposed.
Given the damage assessment and Lahaina's relatively high $1.5 million average single-family home value, we estimate insured losses will be at least $1 billion and primarily affect P&C insurers with significant homeowners and commercial property market share in Lahaina,” Moody’s said.
It added: “While primary insurers, such as State Farm Mutual Automobile Insurance Co., Tokio Marine Holdings Inc., The Allstate Corporation have exposure in Hawaii, we expect that large carriers will readily absorb the losses given that business in Hawaii is a small fraction of their overall insured portfolios.
“These firms have considerable resources to withstand catastrophe events given their careful monitoring of exposures, geographic diversification, high quality reinsurance protection and strong capital bases.”
According to Moody’s, State Farm is the leading homeowners’ insurer in Hawaii while Tokio Marine unit First Insurance is the largest commercial building insurer and the second largest homeowners’ insurer.