Progressive expects $1.2bn property reinsurance recovery after Ian

The Progressive Corporation has reported an expectation of recovering around $1.2 billion from its property reinsurance arrangements, to help it pay for an estimated $1.4 billion of gross property claims from hurricane Ian.

Progressive said that within its property business, it expects to retain $175 million of losses and $25 million of allocated loss adjustment expenses.

Its property combined ratio hit a huge 193% thanks to hurricane Ian, with a net catastrophe loss ratio of 97.7%.

Before taking reinsurance recoveries into account, Progressive said that it estimates its property losses and allocated loss adjustment expenses from hurricane Ian are $1.4 billion.

Adding that, an increase in its reinsurance recoverable largely reflected $1.2 billion of recoverables related to hurricane Ian under its non-regulated reinsurance programs, which is the amount the company estimates will be recovered from its reinsurers now.

On an IBNR basis, the company reported $760 million of catastrophe losses, or 19.6 loss ratio points, related to the multiple landfalls of Hurricane Ian, for September.

In addition, Progressive is expecting vehicle losses of $585 million, including boats and recreational vehicles, on top of the property losses it estimates.

Read all of our coverage of hurricane Ian, and our analysis on the potential market losses, here.