WASHINGTON, Oct 10 (Askume) – Hurricane Milton could cause up to $50 billion in insured losses to Florida homeowners in 2024 alone, Fitch Ratings said in a report released on Thursday .
The Category 3 hurricane hit the Sunshine State on Thursday morning , killing at least 10 people and knocking out power to millions.
But the state appears to have managed to avoid what analysts described as a “worst-case scenario,” with analysts on Wednesday predicting $100 billion in insured losses for Milton alone .
A report released Thursday by Fitch analysts estimated that Milton would suffer $300 to $50 billion in insured losses, which would be the largest insured loss in 2022 since Hurricane Ian.
Fitch analysts wrote that Hurricane Milton, which followed Hurricane Helene two weeks earlier, would cause total insured losses of more than $100 billion for the state’s insurers for the fifth consecutive year.
Fitch said ultimate losses will depend on the level of demand versus the supply needed to repair and rebuild damaged properties after the storm, which could be 20% or more of historical insured losses.
Milton is unlikely to impact the reputations of large, well-capitalized property and casualty insurers and global reinsurers, the report said.
Fitch analysts wrote that domestic insurers could also absorb expected losses through reinsurance programs. However, they warned that these state experts would be exposed if another hurricane hits the state this hurricane season.
“The disruption caused by Milton will further weaken the precarious state of Florida’s homeowners insurance market.”
